Question: Scott Corporation issued a 100 000 eight year 7 percent
Scott Corporation issued a $ 100,000, eight- year, 7 percent note for cash on June 1, 2011. The note pays interest semiannually and the market rate of interest was 6 percent when the note was issued. Given this information, make the entries for the first year of the note’s life if Scott Corporation has a December 31 fiscal year- end. Show how Scott reports the note on its income statement, balance sheet, and cash flow statement for the year ended December 31, 2011.
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