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    Accounting - Financial Reporting

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    DeFilippo Company agreed to loan Morreale Glass Corporation $400,000. Morreale Glass Corporation gave a zero-interest-bearing note due in 4 years and also promised to provide DeFilippo Company with glass products at a special discount price. (A 12% interest rate is an appropriate rate for both companies.)

    Directions(20 Points):
    1. Prepare the journal entry DeFilippo Company would make to record this transaction.
    2. Prepare an amortization schedule for the note using the effective-interest method. (15 Points)

    Prepare your responses on a separate Excel spreadsheet as directed on the Problem Set 2 directions.

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    Solution Summary

    The expert examines financial reporting in accounting.