Question
Coronado Corporation issued a 5-year, $78,000, zero-interest-bearing note to Brown Company on January 1, 2020, and received cash of $38,780. The implicit interest rate is
Coronado Corporation issued a 5-year, $78,000, zero-interest-bearing note to Brown Company on January 1, 2020, and received cash of $38,780. The implicit interest rate is 15%. Prepare Coronados journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest.
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
14th Global Edition
978-0273753872, 0273753878
