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On April 1, 2020, Sarasota Inc. signed a $147,000, zero-interest-bearing, six-month promissory note. The notes present value is $140,000 based on the banks discount rate of 10%. The companys year-end is September 30, 2020 and the note is repayable on October 1, 2020.

Prepare the journal entries on the books of Sarasota Inc. to record the issue of the note. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
April 1

Prepare the journal entries on the books of Sarasota Inc.to record the year-end interest accrual. (Round answer to 0 decimal places, e.g. 5,125. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
September 30

Prepare the journal entries on the books of Sarasota Inc. to record repayment of the note on October 1, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
October 1

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