ssuance and Interest Amortization for Zero Coupon Note (Straight Line) Kerwin Company borrowed $10,000 on a 2-year, zero coupon note. The note was issued on January 1, 2024. The face amount of the...

ssuance and Interest Amortization for Zero Coupon Note (Straight Line)

Kerwin Company borrowed $10,000 on a 2-year, zero coupon note. The note was issued on January 1, 2024. The face amount of the note, $12,544, is to be paid at maturity on December 31, 2025.

Required:

1.Assuming straight line amortization, calculate the interest expense for 2024 and 2025.
$fill in the blank 316d63fd3fc8024_1

2.Prepare the entries to recognize the borrowing, the first year's interest expense, and the second year's interest expense plus redemption of the note at maturity. If an amount box does not require an entry, leave it blank.

2024 Jan. 1		- Select -	- Select -
		- Select -	- Select -
		- Select -	- Select -
	Record issuance of note at discount
2024 Dec. 31		- Select -	- Select -
		- Select -	- Select -
	Record interest expense
2025 Dec. 31		- Select -	- Select -
		- Select -	- Select -
		- Select -	- Select -
		- Select -	- Select -
	Record interest expense and repayment of note principal

Jun 10, 2022

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ssuance and Interest Amortization for Zero Coupon Note (Straight Line) Kerwin Company borrowed $10,000 on a 2-year, zero coupon note. The note was issued on January 1, 2024. The face amount of the...

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