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Home / Questions / On July 1, 2014, Agincourt Inc. made two sales. 1. It sold land having a fair value of $

On July 1, 2014, Agincourt Inc. made two sales. 1. It sold land having a fair value of $

On July 1, 2014, Agincourt Inc. made two sales.

1.   It sold land having a fair value of $700,000 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,101,460. The land is carried on AgincourtAc€?cs books at a cost of $590,000.
2.   It rendered services in exchange for a 3%, 8-year promissory note having a face value of $400,000 (interest payable annually).


Agincourt Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest.
Record the two journal entries that should be recorded by Agincourt Inc. for the sales transactions above that took place on July 1, 2014.

Dec 05 2019 View more View Less

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