Question
On January 1, 2020, X company borrowed 2-year $40000 zero-interest bearing notes from Arab bank. The interest is payable on July 1 and December 31
On January 1, 2020, X company borrowed 2-year $40000 zero-interest bearing notes from Arab bank. The interest is payable on July 1 and December 31 (semiannually). The implicit interest rate is 0.11.
Required:
1 Compute the cash received.
2 Record the journal entry.
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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
