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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On January Marigold Company issued a $year, zerointerestbearing note to Swifty Bank. The note was issued to yield annual interest. Unfortunately, during Marigold fell into financial trouble due to increased competition. After reviewing all available evidence on December Swifty Bank decided that the loan was impaired. Marigold will probably pay back only $ 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 Round present value factor calculations to decimal places, e and final answers to decimal places, e 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 for the amounts. List all debit entries before credit entries.
Account Titles and Explanation
Debit
Credit
Marigold Company Debtor:
Swifty Bank Creditor:
Answer & Explanation
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