Hemingway Inc borrowed from Kohl Company $49,587 on January 1, 2020, Kohl Company accepting Hemingway's...
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Hemingway Inc borrowed from Kohl Company $49,587 on January 1, 2020, Kohl Company accepting Hemingway's 2-year, $60,000, zero-interest-bearing note. The implied interest rate is 10%. Kohl Company has a December 31 year end. REQUIRED: Prepare Kohl's journal entries for 1. the initial transaction 2. recognition of interest each of the two years 3. and the collection of $60,000 at maturity. 4. What would be the entry for \#2 if the note was instead issued on April 1,2020? 5. How would these entries change if this had been an interest bearing note? you can illustrate by choosing one journal entry that would change
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