On January 1, 2017, the Porter Corporation issued a non interest bearing, $64,000 note in four equal installments of $12,000 in exchange for used equipment The first payment is due December 31, 2017 Neither the fair market value of the equipment nor that of the note is determinable The incremental ...

Aper A Journal Keeps a historical Account with out all wh ...

On January 1, 2017, the Porter Corporation issued a non-interest-bearing, $64,000 note in four equal installments of

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On January 1, 2017, the Porter Corporation issued a non-interest-bearing, $64,000 note in four equal installments of $12,000 in exchange for used equipment. The first payment is due December 31, 2017. Neither the fair market value of the equipment nor that of the note is determinable. The incremental borrowing rate of Porter is 12%. 1. Prepare the journal entry to record the purchase of the equipment on January 1, 2017. 2. Prepare the journal entry to record the first payment.