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On January 1, 2025, Tamarisk Company loans $342,920 to Carla Vista Corporation in exchange for a $400,000 zero-interest-bearing note payable in 2 years. The market
On January 1, 2025, Tamarisk Company loans $342,920 to Carla Vista Corporation in exchange for a $400,000 zero-interest-bearing note payable in 2 years. The market rate of interest for a transaction of this nature for Carla Vista is 9%. The present value of 1, 2 years out at 9% is 0.8417. Tamarisk Company has a calendar year-end and it uses the effective-interest method. (a) Prepare journal entries on 1/1/25 to recognize the loan for Tamarisk Company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry) Date Account Titles and Explanation 1/1/25 eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: 0 of 15 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above
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