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On January 1, Ayayai Corp. lent $52,000 to Kingbird, Inc., accepting kingbird's $69,212, three-year, zero interest-bearing note. The implied interest is 10% (a) Prepare Ayayal's
On January 1, Ayayai Corp. lent $52,000 to Kingbird, Inc., accepting kingbird's $69,212, three-year, zero interest-bearing note. The implied interest is 10% (a) Prepare Ayayal's journal entries for the initial transaction, recognition of interest each year assuming use of the effective interest method, and the collection of $69,212 at maturity (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account enter for the amounts.) Account Titles and Explanation Debit Credit Notes Receivable 52000 (To record intial transaction) (To record interest income in the first year) (To record interest income in the second Year) To record interest income in the third year
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