Recording Entries for Interest-Bearing Note Payable Fern Company purchased goods on January 1, 2020, and issued a two-year, $7,500 note with a 5% stated rate. The fair value of the goods is $7,098. The note requires annual interest payments on December 31. The market rate of interest appropriate for this note is 8%. Provide journal entries to be made at each of the following dates. a. January 1, 2020, for issuance of the note. b. December 31, 2020, for the interest payment. Note: List multiple debits or credits (when applicable) in alphabetical order. Note: Round your answers to the nearest whole dollar. Date Account Name Dr. Cr. a. Jan. 1, 2020 Answer Answer Answer Answer Answer Answer Answer Answer Answer b. Dec. 31, 2020 Answer Answer Answer Answer Answer Answer Answer Answer Answer
Recording Entries for Interest-Bearing Note Payable Fern Company purchased goods on January 1, 2020, and issued a two-year, $7,500 note with a 5% stated rate. The fair value of the goods is $7,098. The note requires annual interest payments on December 31. The market rate of interest appropriate for this note is 8%. Provide journal entries to be made at each of the following dates. a. January 1, 2020, for issuance of the note. b. December 31, 2020, for the interest payment. Note: List multiple debits or credits (when applicable) in alphabetical order. Note: Round your answers to the nearest whole dollar. Date Account Name Dr. Cr. a. Jan. 1, 2020 Answer Answer Answer Answer Answer Answer Answer Answer Answer b. Dec. 31, 2020 Answer Answer Answer Answer Answer Answer Answer Answer Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Recording Entries for Interest-Bearing Note Payable
Fern Company purchased goods on January 1, 2020, and issued a two-year, $7,500 note with a 5% stated rate. The fair value of the goods is $7,098. The note requires annual interest payments on December 31. The market rate of interest appropriate for this note is 8%. Provide
a. January 1, 2020, for issuance of the note.
b. December 31, 2020, for the interest payment.
- Note: List multiple debits or credits (when applicable) in alphabetical order.
- Note: Round your answers to the nearest whole dollar.
| Date | Account Name | Dr. | Cr. | |
|---|---|---|---|---|
| a. | Jan. 1, 2020 | Answer | Answer | Answer |
| Answer | Answer | Answer | ||
| Answer | Answer | Answer | ||
| b. | Dec. 31, 2020 | Answer | Answer | Answer |
| Answer | Answer | Answer | ||
| Answer | Answer | Answer |
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