On January $1,$ Bridgeport Corp. lent $$49,000$ to Metlock Ltd$.,$ accepting Metlock's $$65,219,$ three$-$year, zero$-$interest$-$bearing note.

The implied interest is $10\%.$

$($a$)$ Prepare Bridgeport's journal entries for the initial transaction, recognition of interest each year assuming use of the effective

interest method, and the collection of $$65,219$ at maturity. $($Credit account titles are automatically indented when the amount is entered.

Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before

credit entries.$)$

Account Titles and Explanation

Debit

Credit

$($To record initial 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$)$

$($To record collection at maturity$)$