On January 1, 2019, Boater Company issues a $20,000 non-interest-bearing, 5-year note for equipment. Neither the fair
Question:
On January 1, 2019, Boater Company issues a $20,000 non-interest-bearing, 5-year note for equipment. Neither the fair value of the note nor the equipment is determinable. Boater’s incremental borrowing rate is 9%. The asset has a useful life of 7 years. Prepare the journal entry for Boater to record the issuance of the note on January 1.
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The present value of the 20000 note is 1299862 20000 0649931 factor n 5 i 9 Table 3 in TVM Module Ja...View the full answer
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Related Book For 
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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