Newman acrobats lent 24005 to donaldson inc accepting


Newman Acrobats lent $24,005 to Donaldson, Inc., accepting Donaldson’s 2-year, $28,000, zero-interest-bearing note. The implied interest rate is 8%. Prepare Newman’s journal entries for the initial transaction, recognition of interest each year, and the collection of $28,000 at maturity. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. (To record the initial transations) 2. (To record the recognition of interest in year one) 3. (To recognize the interest in year 2) 4. (To record the collection of the note)

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Financial Accounting: Newman acrobats lent 24005 to donaldson inc accepting
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