On March 1, 2020, Parnevik Company sold goods to Goosen Inc. for $660,000 in exchange for a

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On March 1, 2020, Parnevik Company sold goods to Goosen Inc. for $660,000 in exchange for a five-year, zero-interest-bearing note in the face amount of $1,062,937. The goods have an inventory cost on Parnevik’s books of $400,000.

(a) Determine the effective interest rate imputed in the note using Excel or a financial calculator. Prepare the journal entries for Parnevik on

(b) March 1, 2020,

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Intermediate Accounting Volume 1

ISBN: 978-1119496496

12th Canadian edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

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Question Posted: Nov 29, 2019 10:08 AM

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On March 1, 2020, Parnevik Company sold goods to Goosen Inc. for $660,000 in exchange for a

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a Parnevik should record revenue of 660000 on March 1 2020 which is the fair value of the inventory ...View the full answer

Intermediate Accounting Volume 1

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