Carla Corporation issued a $5-$year, $$67,000,$ zero$-$interest$-$bearing note to Brown Company on January $1,2020,$ and received cash of

$$38,018.$ The implicit interest rate is $12\%.$

Prepare Carla's journal entries for $($a$)$ the January $1$ issuance and $($b$)$ the December $31$ recognition of interest. $($Round answers to $0$

decimal places, e$.$g$.38,548.$ If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are

automatically indented when amount is entered. Do not indent manually.$)$

No$.$

Date

Account Titles and Explanation

Debit

Cre

$($a$)$

$1$

$($b$)$

Here are the labels:

Accumulated Depreciation$-$Equipment

Accumulated Depreciation$-$Machinery

Accumulated Depreciation$-$Plant and Equipment

Allowance for Doubtful Accounts

Bad Debt Expense

Bond Issue Expense

Bonds Payable

Buildings

Cash

Common Stock

Cost of Goods Sold

Debt Investments

Depreciation Expense

Discount on Bonds Payable

Discount on Notes Payable

Discount on Notes Receivable

Equipment

Equity Investments

Gain on Disposal of Machinery

Gain on Disposal of Land

Gain on Disposal of Plant Assets

Gain on Redemption of Bonds

Gain on Restructuring of Debt

Gain on Sale of Machinery

Interest Expense

Interest Payable

Interest Receivable

Interest Revenue

Inventory

Land

Loss on Disposal of Equipment

Loss on Disposal of Land

Loss on Redemption of Bonds

Machinery

Mortgage Payable

No Entry

Notes Payable

Notes Receivable

Paid$-$in Capital in Excess of Par $-$ Common Stock

Paid$-$in Capital in Excess of Par $-$ Preferred Stock

Premium on Bonds Payable

Retained Earnings

Salaries and Wages Expense

Sales

Sales Revenue

Unamortized Bond Issue Costs

Unearned Revenue

Unearned Sales Revenue

Unrealized Holding Gain or Loss $-$ Equity

Unrealized Holding Gain or Loss $-$ Income