Exercise 10-9(Algo) Acquisition cost; noninterest-bearing note [LO10-3] On January 1,2024, Byner Company purchased...
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Exercise Algo Acquisition cost; noninterestbearing note LO On January Byner Company purchased a used tractor. Byner paid $ down and signed a noninterestbearing note requiring $ to be paid on December The fair value of the tractor is not determinable. An interest rate of properly reflects the time value of money for this type of loan agreement. The company's fiscal yearend is December Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $ Required: Prepare the journal entry to record the acquisition of the tractor. How much interest expense will the company include in its and income statements for this note? What is the amount of the liability the company will report in its and balance sheets for this note? 
Exercise Algo Acquisition cost; noninterestbearing note LO
On January Byner Company purchased a used tractor. Byner paid $ down and signed a noninterestbearing note requiring $ to be paid on December The fair value of the tractor is not determinable. An interest rate of properly reflects the time value of money for this type of loan agreement. The company's fiscal yearend is December
Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
Required:
Prepare the journal entry to record the acquisition of the tractor.
How much interest expense will the company include in its and income statements for this note?
What is the amount of the liability the company will report in its and balance sheets for this note?
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