aal300m
Mar 1, 2009, 01:12 PM
Non-Interest Bearing Note
On January 1, 2009, Ellen Green Company made the following acquisition:
Purchased land having a fair market value of $200,000 by issuing a 5-year, non interest bearing note in the face amount of $275,000. The company normally pays 11% for funds in borrows from it bank.
Prepare the journal entry to record the purchase the land and the issuance of the note
Prepare the journal entry to record the interest expense for 2009.
I am confused with this question I need help to get started please help
On January 1, 2009, Ellen Green Company made the following acquisition:
Purchased land having a fair market value of $200,000 by issuing a 5-year, non interest bearing note in the face amount of $275,000. The company normally pays 11% for funds in borrows from it bank.
Prepare the journal entry to record the purchase the land and the issuance of the note
Prepare the journal entry to record the interest expense for 2009.
I am confused with this question I need help to get started please help