Question: Problem #1 On Jan. 1, 2020, Brady Co., sold a 1-acre land parcel to Sour Co.. Sour Co. gave a zero-interest-bearing note with a maturity

Problem #1

On Jan. 1, 2020, Brady Co., sold a 1-acre land parcel to Sour Co.. Sour Co. gave a zero-interest-bearing note with a maturity payment of $112,204 due Dec. 31, 2024. Sour Co.'s credit rating makes it eligible to borrow money at 7% interest compounded annually from local banks. Brady Co. originally purchased the 1-acre land parcel for $50,000 in 2012.

Instructions: For Brady Company: Record all journal entries related to this transaction for 2020 assuming Brady Company has a December 31, 2020 year end.

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