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Cullumber Company loaned $70,083 to Riverbed, Inc., accepting Riverbed's 2-year, $84,800, zero-interest-bearing note. The implied...

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Accounting

Cullumber Company loaned $70,083 to Riverbed, Inc., accepting Riverbed's 2-year, $84,800, zero-interest-bearing note. The implied
interest rate is 10%.
Prepare Cullumber's journal entries for the initial transaction, recognition of interest each year, and the collection of $84,800 at
maturity. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before
credit entries. Round answers to 0 decimal places, e.g.5,815.)
Account Titles and Explanation
Debit
Credit
(To record the receipt of the note at a discount.)
(To record the interest revenue at the end of 1st year.)
(To record the interest revenue at the end of 2 nd year.)
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