On october 1, eder fabrication borrowed $60 million and issued a nine-month promissory note. interest was payable at maturity. interest was discounted at issuance at a 12% discount rate. prepare the journal entry for the issuance of the note and the appropriate adjusting entry for the note at december 31, the end of the reporting period.

Phillip purchased a machine for his business last year. it cost $50,000. the machine required a skilled operator, who was a worker earning $2,000 per month. how will phillip treat the cost of the machine and the wages of the skilled operator in his books of accounts? in his books of accounts, phillip will record the machine as a(n) and the wages paid to the skilled operator as a(n) .