On January 1, 2016, Domino Incorporated sells land to Jon Jon Associates in return for a $800,000, 4 year, zero interest note maturing on December 31, 2019. The land is valued at cost of $350,000 on the books of Domino Incorporated. The normal borrowing rate for Jon Jon is 10%.

Required:

1. Prepare the journal entry to record the sale of the land on Dominos books.

2. Prepare an amortization table using the effective interest method.

3. Prepare the journal entries to record the interest revenue in 2016, 2017, 2018 and 2019 for Domino.