Sheffield Corp. lent $30,250 to Sage Hill Inc., accepting Sage Hills $41,372, three-year, zero-interest-bearing note. The implied interest is 11%.

Prepare Sheffields journal entries for the initial transaction, recognition of interest each year assuming use of the effective interest method, and the collection of $41,372 at maturity.(Round answers to 0 decimal places, e.g. 8,971. 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.)