Future Co. performed consulting service for present Co. on December 31,2020. present was short of cash, and future Co. accept a $372,000 zero-interest-bearing note due December 31,2022, as payment full. Presents is somewhat of a credit risk and typically borrows fund at a rate of 12%. future is much more credit worthy and has various lines of credit at 6%

Instructions:

1. Prepare journal entry to record transaction of December 31, 2020. for future Co. ( 2 accounts only )

2. prepare the journal entry for December 31, 2021 adjust for interest revenue. ( 2 accounts only )

3. prepare the journal entry for December 31, 2020 to record interest revenue. ( 2 accounts only )

4. prepare the journal entry for December 31, 2020 to record collection of note. ( 2 accounts only )