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Recording Entries for Long - Term Note Receivable; Effective Interest Method On January 1 of Year 1 , Jacobs Company sells land in return for
Recording Entries for LongTerm Note Receivable; Effective Interest Method
On January of Year Jacobs Company sells land in return for a $ note, issued by Andress Company. The note is a $ annual interestbearing note. Andress agrees to repay the $ proceeds on December of Year The prevailing interest rate on similar notes is Assume that the cost of the land is equal to the fair value of the note.
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Note: Round answers to the nearest whole dollar.
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