Sophia Incorporated issued a $105,000, five-year, zero interest-bearing note to Angelica Corp. on January 1, 2023, and received $52,000 cash. Sophia uses the effective interest method. 

(a) Using (1) a financial calculator or (2) Excel function Rate, calculate the implicit interest rate. Round the interest rate to two decimal places.

(b) Prepare Sophia’s journal entry for the January 1 issuance. 

(c) Prepare Sophia’s journal entry for the December 31 recognition of interest. 

(d) Prepare an effective interest amortization table for the note. Round to the nearest cent.