ZERO-COUPON NOTE USING T-ACCOUNTS. Dodge City Products borrowed $100,000 cash by issuing a 36-month, $120,880 zero-coupon note on January 1, 19x7. The note matures on December 31, 19x9.

REQUIRED:
1. Prepare the T-account entry to recognize issuance of the note. 2. Prepare the T-account adjustments to recognize 19x7 and 19x8 interest. 3. Prepare the T-account entry to recognize 19x9 interest and repayment of the note at maturity.