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Zephyr Company is provided a grant by a foreign government for. the purpose of acquiring land for a building site. The by a grant is a zero-interest loan for 5 years evidenced promissory note. The loan was granted on January 1, 2020 for P8,000;000. Tha market rate of interest is 6%. The present value of 1 for five periods at 6% is .7473. Required: Prepare journal entries for 2020 and 2021.

Zephyr Company is provided a grant by a foreign government for. the purpose of acquiring land for a building site. The by a grant is a zero-interest loan for 5 years evidenced promissory note. The loan was granted on January 1, 2020 for P8,000;000. Tha market rate of interest is 6%. The present value of 1 for five periods at 6% is .7473. Required: Prepare journal entries for 2020 and 2021.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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pls prepare journal entries for 2020 and 2021. Also, show solutions and explanations

for. the purpose of acquiring land for a building site. The Problem 24-6 (IAA) Zephyr Company is provided a grant by a foreign governme for. the purpose of acquiring land for a building site grant is a zero-interest loan for 5 years evidenced hu promissory note. The loan was granted on January 1, 2020 for P8,000;000, The market rate of interest is 6%. The present value of 1 for fiv periods at 6% is .7473. Required: Prepare journal entries for 2020 and 2021. 684
Transcribed Image Text:for. the purpose of acquiring land for a building site. The Problem 24-6 (IAA) Zephyr Company is provided a grant by a foreign governme for. the purpose of acquiring land for a building site grant is a zero-interest loan for 5 years evidenced hu promissory note. The loan was granted on January 1, 2020 for P8,000;000, The market rate of interest is 6%. The present value of 1 for fiv periods at 6% is .7473. Required: Prepare journal entries for 2020 and 2021. 684
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