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HELP URGENTLY Morgan Acrobats lent $25,972 to Donaldson, Inc., accepting Donaldson's2-year, $32,000, zero-interest-bearing note. The implied interest rate is 11%. Prepare Morgan's Journal entries for
HELP URGENTLY
Morgan Acrobats lent $25,972 to Donaldson, Inc., accepting Donaldson's2-year, $32,000, zero-interest-bearing note. The implied interest rate is 11%. Prepare Morgan's Journal entries for the initial transaction, recognition of interest each year, and the collection of $32,000 at maturity. (Round answers to 0 decimal places, e.g. 5,275. 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.)Step by Step Solution
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