Brief Exercise 14-11 Samson Corporation issued a 4-year, $75,000, zero-interest-bearing note to Brown Company on January 1, 2020, and received cash of $47,664

Question:

Answer:

DateAccount Titles and ExplanationDebitCredit
January 01,2020Cash47664
Discount on Notes Payable27336
      Notes Payable75000
December 31,2020Interest Expense5720=47664*12%
      Discount on Notes Payable5720

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