Canada Entries, exchange of notes and non-financial assets

[admai]

Assume I borrowed 4 million dollars from company XYZ. This is done through a non-interest bearing note with the market rate of 10%.In addition, I also agree to sell furniture to the company at a cheaper price. The entry for the transaction will be as seen below:

Cash 4,000,000

Note Payable 2,732,054
Unearned Revenue 1,267,946
​

My question is why the difference between cash and the present value of the notes payable is unearned revenue?

 

[Bert82]

What is the source of that mentioned "unearned revenue"?

"Your" company as the borrower might have recorded
Cash 2,732,054
deferred expenses* 1,267,946
--> liability 4,000,000


the XYZ-company as loaner / credit grantor records
receivables 4.000.000
--> cash 2,732,054
--> deferred revenue*/** 1,267,946

*or equivalent (e.g. unearned revenue)
** i don't know the exakt standards for Canada, but it seems to be that the point in time / effective date for the revenue recognition is the maturity date of that loan.

when selling the furniture to XYZ company the borrowing company should record
liability (e.g.) 500,000
--> sales revenue (e.g.)500,000