Orange Mfg. Co. issued a four-year non-interest-bearing note with a face value of $500,000. Orange received
$329,365, resulting in an effective 11% interest rate.
Required:
Prepare journal entries to:
a. Issue the note
b. Record interest at the end of the first year
c. Record interest at the end of the second year
Note: round all answers to the nearest dollar.)

Question

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The Answer of Orange Mfg. Co. issued a four-year non-interest-bearing note with a face value of $500,000. Orange received
$329,365, resulting in an effective 11% interest rate.
Required:
Prepare journal entries to:
a. Issue the note
b. Record interest at the end of the first year
c. Record interest at the end of the second year
Note: round all answers to the nearest dollar.)