On April $1,2023,$ DDJ Inc. signed a $$147,000,$ zero$-$interest$-$bearing, six$-$month promissory note. The note's present value is $$140,000$

based on the bank's discount rate of $10\%.$ The company's year$-$end is September $30,2023$ and the note is repayable on October $1,$

$($a$)$

Your answer is correct.

Prepare the journal entry on the books of DDJ Inc. to record the issue of the note. $($Credit account titles are automatically

indented when the amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is

required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date Account Titles and Explanation

Debit

Credit

April $1$

Notes PayablePrepare the journal entry on the books of DDJ Inc. to record the year$-$end interest accrual. $($Round answers to $0$ decimal

places, e$.$g$.5,125.$ Credit account titles are automatically indented when the amount is entered. Do not indent

manually. List debit entry before credit entry. If no entry is required, select $"$No Entry" for the account titles and

enter $0$ for the amounts.$)$

Date

Account Titles and Explanation

Debit

Credit

September

$30$