Question
Leon Acrobats lent $56,002 to Donaldson, Inc., accepting Donaldsons 2-year, $69,000, zero-interest-bearing note. The implied interest rate is 11%. Prepare Leons journal entries for the
Leon Acrobats lent $56,002 to Donaldson, Inc., accepting Donaldsons 2-year, $69,000, zero-interest-bearing note. The implied interest rate is 11%. Prepare Leons journal entries for the initial transaction, recognition of interest each year, and the collection of $69,000 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.)
Account Titles and Explanation | Debit | Credit |
---|---|---|
| ||
| ||
(To record the initial transations) | ||
(To record the recognition of interest in year one) | ||
(To recognize the interest in year 2) | ||
(To record the collection of the note) |
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