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This year, company B sold land for a non-interest bearing note. The note calls for annual payments of $30,000 for 4 years. The payments will
This year, company B sold land for a non-interest bearing note. The note calls for annual payments of $30,000 for 4 years. The payments will begin one year from the date of the sale. An appropriate rate of interest for this type of note is 7%. The land had an original purchase cost of $100,000. Create the following journal entry.
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