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Prepare the journal entry to record the sale on January

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Reference no: EM132556528

Question - On January 1, 2010, Mahler Corporation receives a four-year, $100,000 zero-interest bearing note in payment of goods sold. The present value of the note equals the agreed upon sales price of $65,873. 

Assuming Mahler uses the effective interest method to amortize the note's discount, The implicit rate of interest is 11 %

Required -

1) Prepare the amortization table.

2) Prepare the journal entry to record the sale on January 1, 2010 and the interest accrual on December 31, 2010 only.

Reference no: EM132556528

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