On January 1, 2020, Athena Corporation borrowed $110,000 cash on a $155,000, 24-month 0% note. Athena uses the straight-line method of amortization.
Required:
1. Record the borrowing in Athena's journal.
2. Prepare the adjusting entry for December 31, 2020.
3. Prepare the entries to recognize the 2021 interest expense and repayment of the note on
December 31, 2021.