issues a $ 250,000, three-month zero-interest-bearing note payable to Hanson Bank on May 1, 2020. The note has a present value of $ 246,305 based on the bank's discount rate of 6%.
Instructions
Prepare the journal entry to record the cash received by Mishin on May 1, the entry to record interest expense at the company's July 31 year-end and the entry at maturity of the note.

Question

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The Answer of issues a $ 250,000, three-month zero-interest-bearing note payable to Hanson Bank on May 1, 2020. The note has a present value of $ 246,305 based on the bank's discount rate of 6%.
Instructions
Prepare the journal entry to record the cash received by Mishin on May 1, the entry to record interest expense at the company's July 31 year-end and the entry at maturity of the note.

Issues a $ 250,000, Three-Month Zero-Interest-Bearing Note Payable to Hanson