Question $2$ of $6$

$\frac{0\mathrm{.}19}{1}$

On January $1,2025,$ Marigold Company issued a $$1,216,200,5-$year, zero$-$interest$-$bearing note to Swifty Bank. The note was issued to yield $9\%$ annual interest. Unfortunately, during $2026$ Marigold fell into financial trouble due to increased competition. After reviewing all available evidence on December $31,2026,$ Swifty Bank decided that the loan was impaired. Marigold will probably pay back only $$810,800$ of the principal at maturity.

$($a$)$

Your answer is partially correct.

Prepare journal entries for both Marigold Company and Swifty Bank to record the issuance of the note on January $1,2025.($Round present value factor calculations to $5$ decimal places, eg$.1\mathrm{.}25124$ 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 $0$ for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

Marigold Company $($Debtor$)$:

Cash

$790408$

Discount on Notes Payable

Swifty Bank $($Creditor$)$: