On January 1, 2013, Johnson Corporation issued a 2-year note due December 31, 2014, with a face

Question:

On January 1, 2013, Johnson Corporation issued a 2-year note due December 31, 2014, with a face value of $10,000, receiving $7,694.68 in exchange.

Required:

Prepare the journal entries to account for the note:

1. On the date the note is issued

2. At the end of 2013

3. At the end of 2014

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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Related Book For  book-img-for-question

Intermediate Accounting Reporting and Analysis

ISBN: 978-1111822361

1st edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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