Pharoah Company loaned $74,050 to Sheffield, Inc., accepting Sheffield's 2-year, $89,600, zero-interest-bearing note. The implied...
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Pharoah Company loaned $74,050 to Sheffield, Inc., accepting Sheffield's 2-year, $89,600, zero-interest-bearing note. The implied interest rate is 10%. Prepare Pharoah's journal entries for the initial transaction, recognition of interest each year, and the collection of $89,600 at maturity. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,815.)
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Pharoah Company loaned $74,050 to Sheffield, Inc., accepting Sheffield's 2-year, $89,600, zero-interest-bearing note. The implied interest rate is 10%. Prepare Pharoah's journal entries for the initial transaction, recognition of interest each year, and the collection of $89,600 at maturity. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,815.) 