Kohl Company lent $45,000 to Hemingway, Inc, accepting Hemingway's 2-year, $54,450, zero-interest-bearing note. The implied interest rate is 10.0%. Prepare Kohl's journal entries for the initial transaction, recognition of interest each year, and the collection of $54,450 at maturity. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)