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The note receivable was taken on February 1, 20X7. It is repayable at $20,000 per annum, first due February 1, 20X8. The payment includes interest
- The note receivable was taken on February 1, 20X7. It is repayable at $20,000 per annum, first due February 1, 20X8. The payment includes interest at 6% per annum, which is the market rate of interest for loans of this nature.
What is the required Journal Entry.
Answer says Dr. Unearned interest 94
Cr. Notes receivable 94
Where is the 94 coming from?
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Managerial Accounting for Managers
Authors: Eric Noreen, Peter Brewer, Ray Garrison
3rd edition
78025427, 978-0077736460, 007773646X, 978-0078025426
