Marigold Corporation issued a 5-year, $66,000, zero-interest-bearing note to Garcia Company on January 1, 2025, and received cash
of $66,000. In addition, Marigold agreed to sell merchandise to Garcia at an amount less than regular selling price over the 5-year
period. The market rate of interest for similar notes is 11%.
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Prepare Marigold Corporation's January 1 journal entry. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final
answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit
account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
Date Account Titles and Explanation
January 1,
2025
Cash
Bonds Payable
Interest Expense
Interest Payable
Debit
Credit