Carla Corporation issued a 5-year, $82,000, zero-interest-bearing note to Brown Company on January 1, 2025, and received cash of $48,663. The implicit interest rate is 11%. Prepare Carla's 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 O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. Date Account Titles and Explanation Debit Cre
Carla Corporation issued a 5-year, $82,000, zero-interest-bearing note to Brown Company on January 1, 2025, and received cash of $48,663. The implicit interest rate is 11%. Prepare Carla's 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 O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. Date Account Titles and Explanation Debit Cre
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Carla Corporation issued a 5-year, $82,000, zero-interest-bearing note to Brown Company on January 1, 2025, and received cash of
$48,663. The implicit interest rate is 11%.
Prepare Carla's journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest. (Round answers to 0
decimal places, eg. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are
automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
No.
Date
(a)
(b)
Account Titles and Explanation
Debit
Cre
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