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Larkspur, Inc. provided several entertainment services to Blue Spruce Corporation in the past. On January 1, 2020, when the receivable for the past services was

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Larkspur, Inc. provided several entertainment services to Blue Spruce Corporation in the past. On January 1, 2020, when the receivable for the past services was due, Blue Spruce was unable to pay the outstanding balance. Larkspur, Inc. agreed to accept a $310.000 non-interest bearing note payable on December 31, 2021. Blue Spruce typically could arrange this kind of financing at an interest rate of 15%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Use 1. PV.1 Tables. 2. a financial calculator, or 3. Excel functions to arrive at the amount to record the note receivable. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and final answers to decimal places, eg. 8,971.) Note receivable $ 269566.7 e Textbook and Media Prepare the journal entry to record this transaction for Larkspur, Inc. on Jan 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Notes Receivable 310000 Accounts Receivable 310000 e Textbook and Media Assistance Used Prepare the journal entries for December 31, 2020 and 2021 using the effective interest method, and assuming that Blue Spruce pays the note on schedule. (Round answers to 0 decimal places, e.g. 8,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit C December 31, 2020 cash notes payable December 31, 2020 interest expense Interest payable (To record interest) December 31, 2020 (To record maturity) e Textbook and Media Assistance Used

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