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On January 1,2025, Marigold Company issued a $1,216,200,5-year, zero-interest-bearing note to Swifty Bank. The note...

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Accounting

On January 1,2025, Marigold Company issued a $1,216,200,5-year, zero-interest-bearing note to Swifty Bank. The note was issued to yield 9% annual interest. Unfortunately, during 2026 Marigold fell into financial trouble due to increased competition. After reviewing all available evidence on December 31,2026, Swifty Bank decided that the loan was impaired. Marigold will probably pay back only $810,800 of the principal at maturity.
(a)
Prepare journal entries for both Marigold Company and Swifty Bank to record the issuance of the note on January 1,2025.(Round present value factor calculations to 5 decimal places, e8.1.25124 and final answers to 0 decimal places, e..5,275. 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. List all debit entries before credit entries.)
Account Titles and Explanation
Debit
Credit
Marigold Company (Debtor):
Swifty Bank (Creditor):
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