Issues a $ 250,000, Three-Month Zero-Interest-Bearing Note Payable to Hanson

question 30

Essay

issues a $ 250,000, three-month zero-interest-bearing note payable to Hanson Bank on May 1, 2020. The note has a present value of $ 246,305 based on the bank's discount rate of 6%.
Instructions
Prepare the journal entry to record the cash received by Mishin on May 1, the entry to record interest expense at the company's July 31 year-end and the entry at maturity of the note.

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Definitions:

Urban Farmer

An individual who engages in agriculture or farming practices within a city or urban area, often focusing on the cultivation of fruits, vegetables, and other produce in small or limited spaces.

Community Garden

Public plots of land used collectively by people of a community for growing plants and vegetables, often enhancing social ties and local food security.

Trustworthiness

Refers to the ability or perceived reliability of a person or system to be honest and uphold integrity.

Trustworthy

Describing an individual or information that is reliable and deserving of trust.