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please full calculation and explanation. Kohl Company lent money to Hemingway Inc. on January 2, 2019, accepting Hemingway's 2 year, zero-interest-bearing note. Following is other
please full calculation and explanation.
Kohl Company lent money to Hemingway Inc. on January 2, 2019, accepting Hemingway's 2 year, zero-interest-bearing note. Following is other information pertaining to the loan transaction: Face value of note $ 93,122 Implicit interest rate on note 10% Kohl Company will use the effective interest method. Required: a) Calculate the present value of the note, and prepare the journal entry for Kohl on the date of the initial loan. b) Prepare journal entries for Kohl for the recognition of interest on the note on December 31 of each year. c) Prepare the journal entry for Kohl for the collection of the note at maturityStep by Step Solution
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