On April 1 of Year 1, Mountain Company sold merchandise and received a $34,800, three-year, noninterest-bearing note. The market rate is 10%. Mountain Company has a March 31 year-end. Use the effective interest method to amortize any discount. Required Prepare entries for Mountain Company on April 1 of Year 1, and March 31 of Year 2, Year 3, and Year 4. Note: Round answers to the nearest whole dollar. Date April 1, Year 1 Mar. 31, Year 2 Mar. 31, Year 3 Mar. 31, Year 4 Mar. 31, Year 4 Account Name To record sale of merchandise. To record interest on note To record interest on note To record interest on note To record settlement of note > > > > > > Dr. Cr.

On April 1 of Year 1, Mountain Company sold merchandise and received a $34,800, three-year, noninterest-bearing note. The market rate is 10%. Mountain Company has a March 31 year-end. Use the effective interest method to amortize any discount. Required Prepare entries for Mountain Company on April 1 of Year 1, and March 31 of Year 2, Year 3, and Year 4. Note: Round answers to the nearest whole dollar. Date April 1, Year 1 Mar. 31, Year 2 Mar. 31, Year 3 Mar. 31, Year 4 Mar. 31, Year 4 Account Name To record sale of merchandise. To record interest on note To record interest on note To record interest on note To record settlement of note > > > > > > Dr. Cr.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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