On January 1, 2020, Bagel Ltd. receives a three-year, $100,000 zero-interest-bearing note in exchange for services provided by Bagel. Assume that the note was issued with an implied rate of interest of 5% and that the effective interest method is used. The present value factor for $1 discounted at 5% for 3 periods is 0.86384. Instructions i. Prepares Bagel's journal entry on January 1, 2020 for the initial transaction. (3 marks) Question 5 (continued) ii. Calculate the interest income to be recognized by Bagel for calendar 2021. (2 marks)