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On January 1, 2016, Johnson Corporation issued a 2 year note due December 31, 2017, with a face value of

Question:

On January 1, 2016, Johnson Corporation issued a 2 year note due December 31, 2017, 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 2016
3. At the end of 2017
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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1 2016 Jan 1 Cash 7 694 68 Discount on Notes Payable 2 305 32 Notes Payable 10 000 00 2 …View the full answer


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Intermediate Accounting Reporting and Analysis

Intermediate Accounting Reporting and Analysis

ISBN: 978-1285453828

2nd edition

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

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Question Posted: October 05, 2015 05:29:12
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