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At January 1, 2016, Brant Cargo acquired equipment by issuing a five-year, $125,000 (payable at maturity), 6% note. The market rate of interest for notes of similar risk is 10%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
Prepare the necessary journal entries for Brant Cargo.
1/1/16 Record te purchase of equipment.
12/31/2016 Record the interest expense
12/31/2017 Record the interest expense
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