[Solved] On February 1,2016,Stealth Trucks Sold a Diesel Rig to Kansas

Question 144
Essay

On February 1,2016,Stealth Trucks sold a diesel rig to Kansas Transports for $250,000,receiving a $50,000 down payment and a 12-month,10% note for the balance.Principal and interest are due at maturity,and the 10% interest rate reflected the market rate of interest at the time of sale.On August 1,2016,Kansas Transports discounted the note without recourse at the First South Bank at 12% interest.
Required:
Prepare all required journal entries at August 1 to recognize interest revenue and the discounting of the note.

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