Question: On January 1 , 2 0 2 5 , Bramble Company loaned $ 9 0 0 1 0 0 to Ayayai Industries in exchange for

On January 1,2025, Bramble Company loaned $900100 to Ayayai Industries in exchange for a 3 year, zero-interest-bearing note with
a face amount, $1210000. The prevailing market rate of interest for a loan of this type is 9%. The adjusting journal entry made by
Ayayai at December 31,2025 with regard to the note will include
a debit to Interest Expense for $108900.
a credit to Interest Payable for $54450.
a credit to Discount on Notes Payable for $81009.
a debit to Interest Expense for $27891.
On January 1,2025, Bramble Company loaned $900100 to Ayayai Industries in

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