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On January $1,2025,$ Skysong Company issued a $$1,257,600,5-$year, zero$-$interest$-$bearing note to Concord Bank. The note was issued to yield $8\%$ annual interest. Unfortunately, during $2026$ Skysong fell into financial trouble due to increased competition. After reviewing all available evidence on December $31,2026,$ Concord Bank decided that the loan was impaired. Skysong will probably pay back only $$838,400$ of the principal at maturity.

$($a$)$

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Prepare journal entries for both Skysong Company and Concord Bank to record the issuance of the note on January $1,2025.($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answers to $0$ decimal places, e$.$g$.5,275.$ 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

Skysong Company $($Debtor$)$:

Discount on Notes Payable

Concord Bank $($Creditor$)$:

Notes ReceivableAssuming that both Skysong Company and Concord Bank use the effective$-$interest method to amortize the discount, prepare the amortization schedule for the note. $($Round answers to $0$ decimal places, e$.$g$.5,275.$ Do not leave any field blank. Enter $0$ for the amounts.$)$

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