Question

On November 1, 2010, Edwin, Inc., borrowed cash and signed a $60,000, one-year note payable.

Required
1. Compute the following items assuming (i) an interest-bearing note at 12%, (ii) a non-interest-bearing note discounted at 12%:
a. Cash received
b. Effective interest rate
c. Interest expense for 2010
2. Prepare the journal entries for Edwin, Inc., under each case for 2010 and 2011.



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  • CreatedDecember 09, 2013
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