Skysong Corporation issued a 4-year, $64,000, zero-interest-bearing note to Brown Company on January 1, 2020, and received cash of $40,673. The implicit interest rate is 12%. Prepare Skysong'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 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. (a) (b) Date Account Titles and Explanation Debit Credit
Skysong Corporation issued a 4-year, $64,000, zero-interest-bearing note to Brown Company on January 1, 2020, and received cash of $40,673. The implicit interest rate is 12%. Prepare Skysong'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 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. (a) (b) Date Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Skysong Corporation issued a 4-year, $64,000, zero-interest-bearing note to Brown Company on January 1, 2020, and received cash
of $40,673. The implicit interest rate is 12%.
Prepare Skysong'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 amount is entered. Do not indent manually.)
No.
(a)
(b)
X,
Date
#
Account Titles and Explanation
Debit
Credit
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