Trader Trust accepts a $500,000 non-interest bearing 10-year note from Coffee Co. in exchange for Cash on 1/1/19. Coffee Co. promises to repay $500,000 at maturity. The market rate on 1/1/19 was 4%. Calculate the value of the note and complete the entire amortization table for this note, then record journal entries for 2019 (assuming Trader is a calendar-year company).

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The Answer of Trader Trust accepts a $500,000 non-interest bearing 10-year note from Coffee Co. in exchange for Cash on 1/1/19. Coffee Co. promises to repay $500,000 at maturity. The market rate on 1/1/19 was 4%. Calculate the value of the note and complete the entire amortization table for this note, then record journal entries for 2019 (assuming Trader is a calendar-year company).

Trader Trust Accepts a $500,000 Non-Interest Bearing 10-Year Note from Coffee