Sophia Incorporated issued a $105,000, five-year, zero-interest-bearing note to Angelica Corp. on January 1, 2020, and received $52,000 cash. Sophia uses the effective interest method.

(a) Using (1) a financial calculator or 

(2) Excel function Rate, calculate the implicit interest rate. Round the interest rate to two decimal places.

(b) Prepare Sophia's journal entry for the January 1 issuance.

(c) Prepare Sophia's journal entry for the December 31 recognition of interest.

(d) Prepare an effective interest amortization table for the note. Round to the nearest cent.