Question

On January 1, Dieland Company issues a $20,000 non-interest-bearing, 5-year note for equipment. Neither the fair value of the note nor the equipment is determinable. Dieland Company's incremental borrowing rate is 9%.
The asset has a useful life of 7 years. Prepare the journal entry for Dieland to record the issuance of the note on January 1.



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  • CreatedDecember 09, 2013
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