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W Inc. accepted a three-year noninterest-bearing note for $750,000 on January 1, 2021. The note...

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Accounting

W Inc. accepted a three-year noninterest-bearing note for $750,000 on January 1, 2021. The note was accepted as payment for merchandise. The effective interest rate is 10%. The present value factor for three-year period and 10% interest rate is .7513.

Required:

  1. Prepare journal entries to record the note on January 1, 2021 (4 points).

Prepare journal entries to record interest revenue at the end of 2021, 2022 and 2023

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