Brief Exercise 7-8 Newman Acrobats lent $24,713 to Donaldson, Inc., accepting Donaldson's 2-year, $31,000, zero-interest- bearing note. The implied interest rate is 12%. Prepare Newman's journal entries for the initial transaction, recognition of interest each year, and the collection of $31,000 at maturity. (Round answers to O decimal places,e.g. 5,275. If no entry is required, select No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. No. Acceast Titles and Explanation Credit 1. Notes Receivabe Discount on Notes Receivable Cash (To record the initial transations) Discount on Notes Interest Revenue To record the recognition of interest in year one) Discount on Notes Receivable Interest Revenue To recognize the interest in year 2) 4 Cash Notes Receivable To record the collection of the note) Click if you would like to Show Work for this question: Open Show Work
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