On January 1, Martinez Corp. lent $36,000 to Tamarisk, Inc., accepting Tamarisks $47,916, three-year, zero-interest-bearing note. The implied interest is 10%. (a) Prepare Martinezs journal entries for the initial transaction, recognition of interest each year assuming use of the effective interest method, and the collection of $47,916 at maturity.

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)