Prepare kohl journal entries for the initial transaction

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Do accounting journal entries for the following.

Kohl Company lent $53,400 to Hemingway, Inc, accepting Hemingway's 2-year, $66,150, zero-interest-bearing note. The implied interest rate is 11.3%. Prepare Kohl's journal entries for the initial transaction, recognition of interest each year, and the collection of $66,150 at maturity.

Reference no: EM131869726

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