Explain the two transactions of credit ratings


Rentoul Inc. made two sales.It sold land having a fair value of $900,000 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,416,163. The land is carried on Rentoul's books at a cost of $590,000. 2. It rendered services in exchange for a 3%, 8-year promissory . Rentoul Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest. Record the two journal entries that should be recorded by Rentoul Inc. for the sales transactions above that took place on July 1, 2012.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Explain the two transactions of credit ratings
Reference No:- TGS0672251

Expected delivery within 24 Hours