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

Question 144

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.
Prepare all required journal entries at August 1 to recognize interest revenue and the discounting of the note.

10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes.


Explore our library and get Accounting Homework Help with various study sets and a huge amount of quizzes and questions


Study sets





Upload material to get free access

Upload Now Upload Now
Upload Now

Invite a friend and get free access

Upload NowInvite a friend
Invite a friend

Subscribe and get an instant access

See our plansSee our plans
See our plans