17) For the following transaction, provide all of the required journal entries from inception to liquidation. Assume a December 31 year end and that the company does not prepare interim statements. Round all amounts to nearest dollar.
Face value of note payable$200,000
Date of issue for noteMarch 1, 2012
Due date for noteMarch 1, 2013
Interest rate in the note0%
Market rate of interest5%
Consideration receivedMachinery
18) For the following transaction, provide all of the required journal entries from inception to liquidation. Assume a December 31 year end and that the company does not prepare interim statements. Round all amounts to nearest dollar.
Face value of note payable$200,000
Date of issue for noteMay 1, 2012
Due date for noteMay 1, 2013
Interest rate in the note5%
(interest due at maturity)
Market rate of interest5%
Consideration receivedCash