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5. On December 31, 2020 Charlotte Corporation completed consulting services for Eleanor Company and accepted a 3-year zero- interest bearing promissory note in the face
5. On December 31, 2020 Charlotte Corporation completed consulting services for Eleanor Company and accepted a 3-year zero- interest bearing promissory note in the face amount of $500,000 with a due date of December 31, 2022. The fair value of the services is not determinable and the note has no market. Charlotte's cost of borrowing is 8%, but they know that Eleanor's borrowing rate is 10%. 8% 10% Present Value of 1, 3 periods 10.79383|0.751320 Present Value of an ordinary annuity of 1,3 periods 2.5771 2.48685 Required: Prepare the journal entry on Charlotte's books to record the services rendered
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