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Question - On May 16, 20X1, Safeway Company received a 90-day, 10 percent, $9,400 interest-bearing note from Black Company in settlement of Black's past-due account. On June 30, Safeway discounted this note at Fargo Bank and Trust. The bank charged a discount rate of 15 percent. On August 14, Safeway received a notice that Black had paid the note and the interest on the due date.
Required: Prepare the entries in general journal form to record these transactions.
Analyze: If the company prepared a balance sheet on July 31, 20X1, how should Notes Receivable-Discounted be presented on the statement?
QUESTION 2 - CGT Calculation - What is Jack's tax liability for each of the tax periods in which the above transactions occur
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