Zero Coupon Note (Straight Line)} Labrador City Products borrowed ($ 100,000) cash by issuing a 36 -month,
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Zero Coupon Note (Straight Line)}
Labrador City Products borrowed \(\$ 100,000\) cash by issuing a 36 -month, \(\$ 120,880\) zero coupon note on December 31, 2018. The note matures on December 31, 2021.
\section*{Required:}
1. Prepare the entry to recognize issuance of the note.
2. Prepare the adjustments to recognize 2019 and 2020 interest.
3. Prepare the entry to recognize 2021 interest and repayment of the note at maturity.
\section*{Exercise
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Related Book For
Cornerstones Of Financial Accounting
ISBN: 9780176707125
2nd Canadian Edition
Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone
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