Question
Webb Corporation purchased an asset from Shaw Corporation on January 1, 2016. Shaw accepted a 3-year, non-interest-bearing note of $18,000 due December 31, 2018, in
Webb Corporation purchased an asset from Shaw Corporation on January 1, 2016. Shaw accepted a 3-year, non-interest-bearing note of $18,000 due December 31, 2018, in exchange for the asset. Neither the fair value of the asset nor that of the note is available. Webb's incremental borrowing rate is 12%.
Required:
Prepare the journal entries to record the issuance of the note, retirement, and any interest expense on the books of Webb on each of the following dates:
January 1, 2016
December 31, 2016
December 31, 2017
December 31, 2018
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The Employers Guide To Surviving Payroll And Human Resources Audits 2019
Authors: Paul E Love
1st Edition
1073422771, 978-1073422777
