On November 1, 2018, Zion Products issued a $200,000, 9-month, noninterest-bearing note to the bank. Interest was discounted at a 12% discount rate. Do only what is required, only! Required:

1. Prepare the appropriate journal entry by Zion to record the issuance of the note.

2. Prepare the adjusting entry by Zion on December 31, 2018.

3. Prepare the appropriate journal entry by Zion to record the payment at maturity.

4. Suppose the note had been structured as a 12% note with interest and principal payable at maturity. Prepare the appropriate journal entry to record the issuance of the note by Zion.

5. Prepare the appropriate journal entry on December 31, 2018, to accrue interest expense on the note described requirement 4, for the 2018 financial statements.