Prepare journal entry to record the transaction of december

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Question - On December 31, 2017, Pharoah Co. sold equipment to Shamrock, Inc. Pharoah Co. agreed to accept a $380,000 zero-interest-bearing note due December 31, 2019, as payment in full. Shamrock, Inc. incorporated in 2017 and had very little credit history at the time of the transaction with Pharoah. Therefore, at that time, Shamrock typically borrowed funds at a rate of 11%. Pharoah has a long and positive credit history. Therefore, Pharoah has various lines of credit at 6%.

Prepare the journal entry to record the transaction of December 31, 2017, for Pharoah Co.

Assuming Pharoah Co.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2018.

Assuming Pharoah Co.'s fiscal-year end is December 31, prepare the journal entries for December 31, 2019.

Reference no: EM132171010

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