Ironbound, Inc. borrows $150,000 by issuing a 12%, 4-year note on January 1, 2016. Ironbound must make
Question:
Ironbound, Inc. borrows $150,000 by issuing a 12%, 4-year note on January 1, 2016. Ironbound must make payments of principal and interest every 3 months, beginning March 31, 2020. The note will be fully paid at maturity on December 31, 2023. The company’s fiscal year ends on December 31. Prepare the journal entries at January 1, 2020, and March 31, 2020.
Step by Step Answer:
We make the following journal entry at inception Next we determine the periodic payment ...View the full answer
Intermediate Accounting
ISBN: 9780136946694
3rd Edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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