Financial statements are prepared on a calendar-year basis

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Reference no: EM13750085

On October 1, 2014, Arden Farm Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of a cash payment Valco Brothers Farm gave Arden a 2-year, $157,000, 10% note (a realistic rate of interest for a note of this type). The note required interest to be paid annually on October 1. Arden’s financial statements are prepared on a calendar-year basis.

Assuming Valco Brothers Farm fulfills all the terms of the note, prepare the necessary journal entries for Arden Farm Equipment Company for the entire term of the note. (Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.

There are 5 journal entries; the 5th journal entry says to record the collection of the interest and two bottom entries with no date association (to record the collection of the note)

Reference no: EM13750085

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Financial statements are prepared on a calendar-year basis : On October 1, 2014, Arden Farm Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of a cash payment Valco Brothers Farm gave Arden a 2-year, $157,000, 10% note (a realistic rate of interest for a note of this type)..

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