Question
E Company issued a 3-year $440,000 zero interest-bearing note on January 1 and received cash of $339,680. The implicit rate is 9%. On December 31
E Company issued a 3-year $440,000 zero interest-bearing note on January 1 and received cash of $339,680. The implicit rate is 9%. On December 31 which of these entries are correct
A. Interest expense is $339,680 x .09
B. Interest expense is $440,000 x .09
C. The credit to Cash is $339,680 x .09
D. The credit to Discount on Notes Payable is $440,000 minus interest expense
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Accounting
Authors: Charles T. Horngren, Walter T. Harrison Jr., Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood
9th Canadian Edition volume 2
013269008X, 978-0133122855, 133122859, 978-0132690089
