1. Flint Corporation issued a 4-year, $48,000,
zero-interest-bearing note to Garcia Company on January 1, 2017,
and received cash of $48,000. In addition, Flint agreed to sell
merchandise to Garcia at an amount less than regular selling price
over the 4-year period. The market rate of interest for similar
notes is 12%.
Prepare Flint Corporation’s January 1 journal entry.
2. At December 31, 2017, Wildhorse
Corporation has the following account balances:
Bonds payable, due January 1, 2026
$2,400,000
Discount on...