Groover Industries issued a 4-year, $90,000, zero-interest-bearing note to McCrery Motors on January 1, 2017 in exchange for a delivery truck. Groover’s incremental borrowing rate of interest is 10%. McCrery’s incremental borrowing rate of interest is 8%. Prepare Groover’s journal entries for (a) the January 1 issuance of the note and (b) the December 31 recognition of interest.
