3) Shlee Corporation issued a 5-year, $ 70,300, zero-interestbearing note to Garcia Company on January 1, 2014, and received cash of $ 70,300. In addition, Shlee agreed to sell merchandise to Garcia at an amount less than regular selling price over the 5-year period. The market rate of interest for similar notes is 12 %.
Prepare Shlee Corporation’ s January 1 journal entry.( Round answers to 0 decimal places, e. g. 38,548. If no entry is required, select " No Entry " for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
4) The following items are found in the financial statements.
Indicate how each of these items should be classified in the financial statements.
Classification( a) Discount on bonds payable
( b) Interest expense( credit balance)( c) Unamortized bond issue costs( d) Gain on repurchase of debt
( e) Mortgage payable( payable in equal amounts over next 3 years)
( f) Debenture bonds payable( maturing in 5 years)( g) Notes payable( due in 4 years)( h) Premium on bonds payable( i) Bonds payable( due in 3 years)