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Business, 07.04.2020 23:07 hurricane01
On July 1, 2014, Agincourt Inc. made two sales.
1. It sold land having a fair value of $918,000 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,393,591. The land is carried on Agincourt's books at a cost of $600,100.
2. It rendered services in exchange for a 5%, 8-year promissory note having a face value of $404,300 (interest payable annually).
Agincourt 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 11% interest.
Required:
Record the two journal entries that should be recorded by Agincourt Inc. for the sales transactions above that took place on July 1, 2014.
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Answers: 3
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On July 1, 2014, Agincourt Inc. made two sales.
1. It sold land having a fair value of...
1. It sold land having a fair value of...
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