On January 1, 2020 Blossom Inc. issues a three-year, $50,000 note bearing interest 5% annually for services rendered. Interest is to be received at the end of each year. The market rate of interest for a not of similar risk is 10%.

The following interest factors are provided:

Table Factors for Three Periods: PV of $1 @ 5% Interest Rate = 0.86384; PV of $1 @ 10% Interest Rate = 0.75132

Table Factors for Three Periods: PV of Annuity @ 5% Interest Rate = 2.72325; PV of Annuity @ 10% Interest Rate = 2.48685

Prepare journal entries for the following:

(1.) To record issuance of the note

(2.) AJE for 12/31/2020

(3.) AJE for 12/31/2021

(4.) Journal entries (2) for 12/31/2022