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Buffalo’s Journal Entries Assignment

Author:
February 19th, 2020

Buffalo Corporation issued a 4-year, $81,000, zero-interest-bearing note to Brown Company on January 1, 2017, and received cash of $46,312. The implicit interest rate is 15%.

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Prepare Buffalo’s journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest.

No. Date Account Titles and Explanation Debit Credit
(a) January 1, 2017
(b) December 31, 2017

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