Shlee SA issued a 4-year, 60,000, zero-interest-bearing note to Garcia Company on January 1, 2019, and received cash of 60,000. In addition, Shlee agreed to sell merchandise to Garcia at an amount less than regular selling price over the 4-year

Shlee SA issued a 4-year, €60,000, zero-interest-bearing note to Garcia Company on January 1, 2019, and received cash of €60,000. In addition, Shlee agreed to sell merchandise to Garcia at an amount less than regular selling price over the 4-year period. The market rate of interest for similar notes is 12%. Prepare Shlee's January 1 journal entry.

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Related Book For  answer-question

Intermediate Accounting IFRS

ISBN: 978-1119372936

3rd edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

Question Details
Chapter # 14- Non-Current Liabilities
Section: Brief Exercises
Problem: 12
Posted Date: November 23, 2017 09:02:55