On December 31, 2014, Morgan Corp. makes a loan to Marie Co. and
receives in exchange a four-year, $50,000 note bearing interest at
7 percent annually on December 31. The market rate of
interest for a note of similar risk is 6 percent.
What journal entry should Morgan Corp. make
on December 31, 2014?
What journal entry should Morgan Corp. make
on December 31, 2016?