Kohl Company lent $54,600 to Hemingway, Inc, accepting Hemingway's 2-year, $66,306, zero-interest-bearing note. The implied interest rate is 10.2%. Prepare Kohl's journal entries for the initial transaction, recognition of interest each year, and the collection of $66,306 at maturity.

List Of Accounts

Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense Cash Cash Over and Short Due from Factor Due to Customer Discount on Notes Payable Discount on Notes Receivable Freight-In Freight-Out Gain on Disposal of Land Interest Expense Interest Receivable Interest Revenue Inventory Land Loss on Sale of Receivables Miscellaneous Expenses No Entry Notes Payable Notes Receivable Office Expense Owner's Drawings Petty Cash Postage Expense Purchase Discounts Recourse Liability Sales Discounts Sales Discounts Forfeited Sales Revenue Service Revenue Supplies Supplies Expenses Unearned Sales Revenue