On April1,2024,Donyel Boats Company sold a yacht to Darien Resorts & Company for $450,000.Darien paid $75,000down and
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Question:
On April 1,2024, Donyel Boats Company sold a yacht to Darien Resorts & Company for $450,000. Darien paid $75,000 down and issued a 12 -month, 12% interest-bearing note for the balance. The principal and interest are due at maturity. The 12% interest rate reflects the market rate of interest at the time of sale.
On July 1, 2024, Donyel Boats Company discounted the note, without recourse, at Nations Trust Bank at 15% interest.
REQUIRED:
Prepare journal entries on the books of Donyel Boats Company
The purchase of the yacht on January 1, 2024
The discounting of the note at Nations Trust Bank on July 1
Assuming that the note was not discounted, the payment of March 31, 2025 the maturity date.
HINT: Donyel closed books on December 31, 2024
Expert Answer:
Journal Entries for Donyel Boats Company 1 Purchase of the Yacht January 1 2024 Debit Yachts Asset a... View the full answer
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