The Pretty Good Corporation (PGC) received a non-interest bearing, 3-year promissory note on January 1, 20X7 in exchange for first time, specialized services rendered. The face amount of the note is $10,000 and the current market rate of interest is 9%, compounded annually.

REQUIRED: (Round your answer to the nearest dollar):

1. Prepare the journal entry to record the sale on January 1, 20X7. (Show all computations to receive full credit).
2. Prepare the amortization table using the effective interest rate method.
3. Prepare the journal entry to record the first years interest accrual on December 31, 20X7.