CJ, Inc. issued a promissory note to AJ, Inc. in the amount of $400,000 on January 1,

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CJ, Inc. issued a promissory note to AJ, Inc. in the amount of $400,000 on January 1, 2014, the due date is December 31, 2018. The note has a stated rate of 4%. Interest is due each year on December 31. The current yield rate of interest is 8%.

a) What is the present value of the note?

b) What entry would AJ, Inc. journalize for the issuance of the note?

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0470161012

9th Canadian Edition, Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.

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Posted Date: Nov 01, 2023 05:10 AM

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CJ, Inc. issued a promissory note to AJ, Inc. in the amount of $400,000 on January 1,

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Answer Solution a The present value of the note is 336115 b Entry to record the issuance ... View the full answer

Intermediate Accounting

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