On January 1, 2019 Elway Inc. gave a 2-year loan to Sutton Corp. in return...
50.1K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2019 Elway Inc. gave a 2-year loan to Sutton Corp. in return for a 2-year note receivable with a face value of 20,000 and a 10% stated interest rate. Interest payments are received semi-annually (6/30 and 12/31) and the note matures on December 31, 2020. The market rate for similar loans is 6%.
Date
Cash Received
Interest Revenue
Disc/Prem Amortized
Carrying Amount
1-Jan
Please prepare the necessary journal entries for Elway Inc. in 2019 and 2020.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
