Question
CoronadoCompany loaned $78,017to Hemingway, Inc, accepting Hemingway's 2-year, $94,400, zero-interest-bearing note. The implied interest rate is10%. PrepareCoronado's journal entries for the initial transaction, recognition of
CoronadoCompany loaned $78,017to Hemingway, Inc, accepting Hemingway's 2-year, $94,400, zero-interest-bearing note. The implied interest rate is10%. PrepareCoronado's journal entries for the initial transaction, recognition of interest each year, and the collection of $94,400at maturity ((Credit account titles are automatically indented when the amount is entered.Do not indent manually.)
Account Titles and Explanation
Debit
Credit
(To record the receipt of the note at a discount.)
(To record the interest revenue at the end of 1st year.)
(To record the interest revenue at the end of 2nd year.)
(To record receipt of notes.)
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