On February 1, 2020, M-Way Unlimited took out a loan from Local City Bank for $300,000. It was a 2-year note at 5% interest, payable in 24 months with no payments due until then. Immediately, M-Way Unlimited transferred $150,000 of it to An Co., a company that sells high tech equipment. This represented a 50% down payment on an agreed upon $300k total contract to buy technology equipment. The remainder was put in a money market fund earning 1.2% interest until October 1, 2020 when the final payment was due to An Co. On Oct 1 the remaining money was transferred from M-Way  Unlimited to An Co.  



Instructions

Please prepare journal entries for the transactions described above.

Answer rating: 100% (QA)

To prepare the journal entries for the transactions described we need to consider the different even... View the full answer