Question
On October 1, Skimmons Co. signed a $90,000, 90-day discounted note in exchange for cash at the bank. The discount rate was 11%, and the
On October 1, Skimmons Co. signed a $90,000, 90-day discounted note in exchange for cash at the
bank. The discount rate was 11%, and the note was paid on December 30.
(a) Journalize the entries for October 1 and December 30.
(b) Assume that Skimmons Co. signed an 11% nondiscounted note. Journalize the entries for October 1 and December 30.
(c) Which of the two options is more favorable to Skimmons and why?
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Accounting For Biological Assets
Authors: Rute Goncalves, Patricia Teixeira Lopes
1st Edition
1032096225, 9781032096223
