Question

Assignment Gradebook ORION Downloadable eTextbook CALCULATOR FULL SCREEN PRINTER VERSION BACK Brief Exercise 14-12 Concord Corporation issued a 4-yea $32,000,4% note to Greenbush Company on January 1, 2020, and received a computer that normally sells for $24.224. The not requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 12%. Prepare Concord's Journal entries for (a) the January 1 issuance and (b) the December 31 interest. (Round answers to decimal place. 38,548. If no entry is required, select "No Entry" for the account titles and enter for the amounts Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Tibles and t a Click you would me to Show Work for this question. Doen Show Work OBRERO nmand command option

Answer 1

Given Concord corporation Issued a 4 year $32,000 47 note to Greenbuck company on Jan-1-2020 Recerved an amount of $ 24,224 Intrest rate of similar note = 121. Journal Entry on Issue of notes Journal Entry for Ine of note on Jan-1204 Debity credit Cash ale biscout al . 7776 Particular Dr & 24,224 a) 32,000 To Notes payable (line the note issued at 24,224 instead of $32,000) The but note 41. is on Similar market face value return on noto 98 127.

note is Issued at 47. Since the Intrest to be calculated on 41. i. Intrest = $32,000 84%. = $1280 Journal Entry for particulan Intrest Expenses To Interest recurate Intrest on 31 dec 2014 Debit I creatitis 1280 1180 a) $1280 (on) Gapens I $1280 Intrest To Nole payahl