At January 1, 2024, Brant Cargo acquired equipment by issuing a six-year, $100,000 (payable at maturity), 6% note. The market rate of interest for notes of similar risk is 10%. Required: 1. to 3. Prepare the necessary journal entries for Brant Cargo. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) No 1 2 3 Date January 01, 2024 Equipment December 31, 202 Interest expense X Answer is not complete. Discount on notes payable Notes payable General Journal December 31, 202 Interest expense Discount on notes payable Cash Discount on notes payable Cash ✓ ✓ ✓ Debit 62,092 X 37,908 x Credit 100,000
At January 1, 2024, Brant Cargo acquired equipment by issuing a six-year, $100,000 (payable at maturity), 6% note. The market rate of interest for notes of similar risk is 10%. Required: 1. to 3. Prepare the necessary journal entries for Brant Cargo. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) No 1 2 3 Date January 01, 2024 Equipment December 31, 202 Interest expense X Answer is not complete. Discount on notes payable Notes payable General Journal December 31, 202 Interest expense Discount on notes payable Cash Discount on notes payable Cash ✓ ✓ ✓ Debit 62,092 X 37,908 x Credit 100,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 14-11 (Algo) Note with unrealistic interest rate [LO14-3]
At January 1, 2024, Brant Cargo acquired equipment by issuing a six-year, $100,000 (payable at maturity), 6% note. The market
rate of interest for notes of similar risk is 10%.
Required:
1. to 3. Prepare the necessary journal entries for Brant Cargo.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your
final answers to the nearest whole dollar. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1,
FVAD of $1 and PVAD of $1)
No
1
2
3
Date
January 01, 2024 Equipment
Discount on notes payable
Notes payable
December 31, 202 Interest expense
X Answer is not complete.
General Journal
Discount on notes payable
Cash
December 31, 202 Interest expense
Discount on notes payable
Cash
✓
Debit
62,092 X
37,908 x
Credit
100,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F824736ad-15bb-44c7-9297-5d8ca658e0b6%2Ff2eea285-e960-4e3a-bee5-9c8ffe0fd6c5%2F1apcxq8_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 14-11 (Algo) Note with unrealistic interest rate [LO14-3]
At January 1, 2024, Brant Cargo acquired equipment by issuing a six-year, $100,000 (payable at maturity), 6% note. The market
rate of interest for notes of similar risk is 10%.
Required:
1. to 3. Prepare the necessary journal entries for Brant Cargo.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your
final answers to the nearest whole dollar. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1,
FVAD of $1 and PVAD of $1)
No
1
2
3
Date
January 01, 2024 Equipment
Discount on notes payable
Notes payable
December 31, 202 Interest expense
X Answer is not complete.
General Journal
Discount on notes payable
Cash
December 31, 202 Interest expense
Discount on notes payable
Cash
✓
Debit
62,092 X
37,908 x
Credit
100,000
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