A non interest-bearing note that pays $5,000 three years from today is issued in exchange...
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Accounting
A non interest-bearing note that pays $5,000 three years from today is issued in exchange for used equipment. If the discount rate appropriate for such notes is 8% per annum, the entry to record the issue of a note for the used equipment on our books would include a:
Multiple Choice
Dr Used Equipment $5,000
Cr Discount on Note Payable $1,031
Cr Note Payable $3,969
None of the other alternatives are correct
Dr Discount on Note Payable $1,031
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