Note issued for cash and other rights
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 (1) Rebecca and (2) Lindsay.
Use your calculator and round values to the nearest dollar.

Question

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The Answer of Note issued for cash and other rights
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 (1) Rebecca and (2) Lindsay.
Use your calculator and round values to the nearest dollar.

Note Issued for Cash and Other Rights