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OnJanuary1,2020,MissionCompanyagreedtobuysomeequipmentfromAnnaCompany.MissionCompanysignedanote,agreeingtopayAnnaCompany$500,000for the equipmentonDecember31,2022.Themarketrateofinterestforthisnotewas10%. Requirements: a) PreparethejournalentryMissionCompanywouldrecordonJanuary1,2020relatedtothispurchase. b) PreparetheDecember31, 2020,adjustingentrytorecordinterestexpenserelatedtothenoteforthefirstyear.Assumethatnoadjustingentrieshavebeenmadeduringtheyear. c) PreparetheDecember31, 2021,adjustingentrytorecordinterestexpenserelatedtothenoteforthesecondyear.Assumethatnoadjustingentrieshavebeenmadeduringtheyear. d) PreparetheentryMissionCompanywouldrecordonDecember31,2012,theduedateofthenotetorecordinterestexpenseforthethirdyearandpaymentofthenote.Assumethatnoadjustingentrieshavebeenmadeduringtheyear

OnJanuary1,2020,MissionCompanyagreedtobuysomeequipmentfromAnnaCompany.MissionCompanysignedanote,agreeingtopayAnnaCompany$500,000for the equipmentonDecember31,2022.Themarketrateofinterestforthisnotewas10%. Requirements: a) PreparethejournalentryMissionCompanywouldrecordonJanuary1,2020relatedtothispurchase. b) PreparetheDecember31, 2020,adjustingentrytorecordinterestexpenserelatedtothenoteforthefirstyear.Assumethatnoadjustingentrieshavebeenmadeduringtheyear. c) PreparetheDecember31, 2021,adjustingentrytorecordinterestexpenserelatedtothenoteforthesecondyear.Assumethatnoadjustingentrieshavebeenmadeduringtheyear. d) PreparetheentryMissionCompanywouldrecordonDecember31,2012,theduedateofthenotetorecordinterestexpenseforthethirdyearandpaymentofthenote.Assumethatnoadjustingentrieshavebeenmadeduringtheyear

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