Please fill in the blanks and show your solution Pronghorn I

Please fill in the blanks and show your solution.

Pronghorn Inc. is a reliable, long-term customer of Culver Ltd. Due to unexpected costs of rapid expansion, Pronghorn was unable to pay its account balance when it became due on January 1, 2018. Culver agreed to accept a $260,000 non-interest bearing note that would be payable on December 31, 2019. This type of financing would typically have an interest rate of 11%. Click here to view the factor t able present value of 1 to view the Prepare the journal entry to record this transaction for Culver Ltd. on Jan 1, 2018. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to decimal places, e.g. 58,971. Credit account titles are automatically indented wen amount is entered. Do not indent manually. If no entry is required, slect \"No Entry\" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Notes Receivable Accounts Receivable SHOW LIST OF ACCOUNTS

Solution

Jan 1 2018 Notes Receivable A/c Dr 211021.83

To Accounts receivable Account credit 211021.83

31 Dec 2018 Notes Receivable A/c Dr (211021.83*11%) 23212.40

To Interest Account Cr 23212.40

31/12/2018 Notes Receivale A/c Dr (211021.83+23212.40)*11% 25765.76

To Interest A/c Cr 25765.76