Prepare the journal entries to record the issuance

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Reference no: EM133265083

Rebecca Land Corp. issued a 5-year, zero-interest-bearing note with a $1,000,000 face value to Lindsay Inc. for $1,000,000 cash. Rebecca also gave Lindsay the right to use a parcel of land for equipment storage for 5 years. Interest rates for notes of this type were 8% at issue.

Instructions

Prepare the journal entries to record the issuance of the note by (a) Rebecca and (b) Lindsay.

Use your calculator and round values to the nearest dollar.

Reference no: EM133265083

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