Question
Swifty Company loaned $71,405 to Hemingway, Inc, accepting Hemingway's 2-year, $86,400, zero-interest-bearing note. The implied interest rate is 10%. Prepare Swifty's journal entries for the
Swifty Company loaned $71,405 to Hemingway, Inc, accepting Hemingway's 2-year, $86,400, zero-interest-bearing note. The implied interest rate is 10%. Prepare Swifty's journal entries for the initial transaction, recognition of interest each year, and the collection of $86,400 at maturity.
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Fundamental Accounting Principles
Authors: John J Wild, Ken Shaw
25th Edition
1260247988, 978-1260247985
