Sarasota Corporation issued a 4-year, $72,000, zero-interest-bearing note to Brown Company on January 1, 2017,...
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Accounting
Sarasota Corporation issued a 4-year, $72,000, zero-interest-bearing note to Brown Company on January 1, 2017, and received cash of $47,429. The implicit interest rate is 11%.
Prepare Sarasotas journal entries for
(a) the January 1 issuance and
(b) the December 31 recognition of interest.
(Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.
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