On September 1, 2015, a Company Signed a $19,800, One-Year

On September 1, 2015, a company signed a $19,800, one-year, non-interest-bearing note payable and received $18,000 cash.
(a)What was the yield rate of interest? ________
(b)Give the entry required at September 1, 2015, in the accounts of the company (use the net method).
(c)Give the adjusting entry required at the end of the accounting year for the company (December 31 2015).
(d)Give the entry required on the due date, August 31, 2016, assuming no reversing entries were made.

Correct Answer:

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(a)$19,800 - $18,000 = $1,800 ...

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