Sheffield Corporation issued a 4-year, $30,000,4% note to Greenbush Company on January 1, 2017, and received a computer that normally sells for $24,294. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is10%.

Prepare Sheffields journal entries for (a) the January 1 issuance and (b) the December 31 interest

RiverbedCorporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of11% and has a carrying value of $11,000. At year-end, Riverbeds borrowing rate (credit risk) has declined; the fair value of the note payable is now $13,000.

Determine the unrealized holding gain or loss on the note

Unrealized Holding Gain or Loss$

Prepare the entry to record any unrealized holding gain or loss.

Brief Exercise 14-12 Sheffield Corporation issued a 4-year, $30,000, 4% note to Greenbush Company on January 1, 2017, and received a computer that normally sells for $24,294. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 10%. Prepare Sheffield's journal entries for (a) the January 1 issuance and (b) the December 31 interest. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date (a) January 1, 2017 (b) December 31, 2017 Account Titles and Explanation Debit Credit Brief Exercise 14-14 Riverbed Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 11% and has a carrying value of $11,000. At year-end, Riverbed's borrowing rate (credit risk) has declined; the fair value of the note payable is now $13,000. Determine the unrealized holding gain or loss on the note. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) $ Unrealized Holding Gain or Loss Prepare the entry to record any unrealized holding gain or loss. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit