Aero Acrobats lent $15,944 to Afterburner, Inc., accepting Afterburners 2-year, $20,000, zero-interest-bearing note. The implied interest rate
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Aero Acrobats lent $15,944 to Afterburner, Inc., accepting Afterburner’s 2-year, $20,000, zero-interest-bearing note. The implied interest rate is 12%. Prepare Aero’s journal entries for the initial transaction, recognition of interest each year, and the collection of $20,000 at maturity.
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Notes Receivable 20000 Discount on Notes Receivable 4056 Cash 15944 ...View the full answer
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Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
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