Khajepour Corporation issued a $140,000, four-year, zero-interest-bearing note to Saccomanno Corp. on January 1, 2014, and received

Question:

Khajepour issued a $140,000, four-year, zero-interest-bearing note to Saccomanno Corp. on January 1, 2014, and received $140,000 cash. In addition, the company agreed to sell merchandise to Saccomanno for an amount less than the regular selling price over the four-year period. The market interest rate for similar notes is 8%. Khajepour uses the effective interest method. Prepare Khajepour's January 1 journal entry?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...