Additional Problem 10 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, 2021. Culver agreed to accept a $260,000 non-interest bearing note that would be payable on December 31, 2024. This type of financing would typically have an interest rate of 11%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.

Use 1. PV.1 Tables, 2. a financial calculator, or 3. Excel functions to arrive at the amountto record the note receivable. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 58,971.)

Note receivable

$

Prepare the journal entry to record this transaction for Culver Ltd. on Jan 1, 2021. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 58,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

Prepare the journal entries for Culver Ltd. on December 31, 2021 and on December 31, 2022, using the effective interest method. (Round answers to 0 decimal places, e.g. 58,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2021December 31, 2022
December 31, 2021December 31, 2022
	(To record interest)