On January 1, 2017, the Porter Corporation issued a non-interest-bearing, $64,000 note in four equal installments of
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- On January 1, 2017, the Porter Corporation issued a non-interest-bearing, $64,000 note in four equal installments of $12,000 in exchange for used equipment. The first payment is due December 31, 2017. Neither the fair market value of the equipment nor that of the note is determinable. The incremental borrowing rate of Porter is 12%. 1. Prepare the journal entry to record the purchase of the equipment on January 1, 2017. 2. Prepare the journal entry to record the first payment.
Related Book For
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
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