Please explain all steps in detail. I will gladly rate.

On January 1, 2020, Sage Company issued a $1,031,400,5-year, zero-interest-bearing note to Pronghorn Bank. The note was issued to yield 8% annual interest. Unfortunately, during 2021 Sage fell into financial trouble due to increased competition. After reviewing all available evidence on December 31, 2021, Pronghorn Bank decided that the loan was impaired. Sage will probably pay back only $687,600 of the principal at maturity. (a) Prepare journal entries for both Sage Company and Pronghorn Bank to record the issuance of the note on January 1, 2020. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. 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 Ofor the amounts.) Debit Credit No. Account Titles and Explanation Sage Company (Debtor): 1. Pronghorn Bank (Creditor): 2