On November 1, 2010, Edwin, Inc., borrowed cash and signed a $60,000, one-year note payable. Required 1.

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On November 1, 2010, Edwin, Inc., borrowed cash and signed a $60,000, one-year note payable.

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 2010

2. Prepare the journal entries for Edwin, Inc., under each case for 2010 and 2011.

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Intermediate Accounting

ISBN: 978-0324659139

11th edition

Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones

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Question Posted: Dec 09, 2013 08:55 AM

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On November 1, 2010, Edwin, Inc., borrowed cash and signed a $60,000, one-year note payable. Required 1.

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1 a Cash received 1 Interestbearing 60000 2 Noninterestbearing 60000 x ...View the full answer

Intermediate Accounting

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