On December $31,2022,$ Shaquille O'Neal Company finished consultation services and accepted in exchange a zero interest bearing note with a face value of $$995,000$ and a due date of December $31,2025.$ The implied interest rate is $12\%.$

The following interest factors are provided.

Interest Rate

Table Factors For Three Periods               $6\%12\%$

Future Value of $\mathrm{ \; \; \; \; \; \; \; \; \; \; \; \; \; \; \; \; \; \; \; \; \; \; \; \; \; 1}1\mathrm{.}191021\mathrm{.}40493$

Present Value of                                          $10\mathrm{.}839620\mathrm{.}71178$

Future Value of Ordinary Annuity of $\mathrm{ \; \; \; \; 1}3\mathrm{.}183603\mathrm{.}37440$

Present Value of Ordinary Annuity of $\mathrm{ \; \; \; 1}2\mathrm{.}673012\mathrm{.}40183$

Instructions:

$($a$.)$ Determine the present value of the note.

$($b$.)$ Prepare the journal entries for the initial transaction, recognition of interest each year, and the collection of the note at maturity.