Sugarland Co. agreed to loan Trenton Retail Inc. On 1/1/Year 1, Trenton gave a $ 58,000 zero interest-bearing note due in 5 years to Sugarland. Assume that the market interest rate to discount the note is 6%. Instructions: a. Determine the present value of the zero-interest bearing note. You should use an appropriate factor (five decimal places) from tables in Ch. 6. Answer: b. Record the journal entry Sugarland (i.e. the lender) would make to record the receipt of the note on 1/1/Year 1. Do not provide journal entry from other dates or points will be deducted. Date Account title Debit Credit c. Prepare an amortization schedule for the note using the effective interest method Year Cash Interest Interest revenue Discount Carrying amount amortized Date of receipt End of year End of year 2 End of year End of year End of years