Question
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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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
