Question: On January 1, 2020, Landry Inc. issued a three-year, ($ 5,000), zero-interest-bearing note to Dillon LLP, and received ($ 4,198). The implied interest rate is

On January 1, 2020, Landry Inc. issued a three-year, \(\$ 5,000\), zero-interest-bearing note to Dillon LLP, and received \(\$ 4,198\). The implied interest rate is \(6 \%\) on this note transaction. Provide journal entries to be made at each of the following dates.

a. January 1,2020 , for issuance of the note.

b. December 31,2020 , for accrual of interest.

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