Example: 10-7: On 1/1/2003 Byner Inc. purchased a tractor.


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Example: 10-7: On 1/1/2003 Byner Inc. purchased a tractor. Company paid $5,000 down and signed a non-interest bearing note requiring five annual installments of $5,000 to be paid at the end of each year. The appropriate interest rate is 10%. The fair value of the tractor is not determinable.(record all journal entries)

Answer

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