Essay
Record note receivable On January 1, 2020, Jumpstart Corp. makes a loan to TryStar Company and receives a $100,000, five-year note bearing interest at 4% semi-annually The market rate for similar loans (with similar credit risk) is 6%.
Instructions
A) Calculate the present value (fair value) of this loan (round to the nearest dollar).
B) Prepare the journal entry to record this transaction.
Correct Answer:
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a) 10 N, 3 I, $2,000...View Answer
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