On January 1, 2016, Domino Incorporated provides a loan to Jon Jon Associates in return...
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Accounting
On January 1, 2016, Domino Incorporated provides a loan to Jon Jon Associates in return for a $5,000,000, 3 year, 5% interest note maturing on December 31, 2018. The normal borrowing rate for Jon Jon is 8%.
1. Prepare the journal entry to record the note receivable
2. Prepare an amortization table using the effective interest method
3. Prepare the journal entries to record the interest revenue in 2016, 2017, & 2018 for Domino
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