On June 1, 2023, Lee Limited sold goods to Photon Inc. in exchange for a zero-interest-bearing note.

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On June 1, 2023, Lee Limited sold goods to Photon Inc. in exchange for a zero-interest-bearing note. Information concerning the transaction follow.

Face amount of note: 852210

Term of note in years:5

Selling price of goods exchanged: 580000

inventory cost of goods on Parnevik ‘s follows: 410000

1. Determine the effective interest rate imputed in the note using Excel's RATE function.

2. Prepare the journal entries for Lee on June 1, 2023, and December 31, 2023.

Related Book For answer-question

Intermediate Accounting

ISBN: 978-1118742976

16th edition

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

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Posted Date: Mar 14, 2023 06:20 AM

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On June 1, 2023, Lee Limited sold goods to Photon Inc. in exchange for a zero-interest-bearing note.

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Step 11 Calculation of the Rate of interest 580000 1r ... View the full answer

Intermediate Accounting

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