On January 1,Pronghorn Corp.lent $43,000toLarkspur, Inc., acceptingLarkspur's $57,233, three-year, zero-interest-bearing note. The implied interest is10%.

(a)

PreparePronghorn's journal entries for the initial transaction, recognition of interest each year assuming use of the effective interest method, and the collection of $57,233at 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 titles and enter 0 for the amounts.)

Account Title: and Explanation Debit Credit Notes Receivable 43000 Cash (To record initial transaction) (To record interest income in the rst year} (To record interest income in the second year} (To record interest income in the third year} (To record collection at maturity)