On November 1, 2007 Edwin, Inc., borrowed cash and signed a $60,000, one year note payable. Required
Question:
Required
1. Compute the following items assuming
(i) An interest-bearing note at 12%,
(ii) A non-interest-bearing note discounted at 12%:
a. Cash received
b. Effective interest rate
c. Interest expense for 2007
2. Prepare the journal entries for Edwin, Inc. under each case for 2007 and 2008.
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Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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