Question

RED: Answer each of the following. Be sure to show all calculations in good form. On December 24 204 on December 31, 2019, Green Company finished consultation services and accepted in exchange a promissory ve with a face value of $850,000, a due date of December 31, 2022, and a stated rate of 5%, with interest veivable at the end of each year. The fair value of the services is not readily determinable and the note is not narketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10%. The following interest factors are provided: Table Factors For Three Periods Future Value of 1 Present Value of 1 Future Value of Ordinary Annuity of 1 Present Value of Ordinary Annuity of 1 ESR Interest Rate 5% 10% 1.15763 1.33100 .86384 75132 3.15250 3.31000 2.72325 2.48685 Instructions (a) Determine the present value of the note. PV of interest 850,000 x .05x12/12 =42.500 cash interest 42500 x 2,48685105691 PV of interest PV OF face PV Or note 857000 x .75132=639.(022. profrace 144313 = present value (b) Ignore your answer to part a and assume that the present value of the note is $720,000 - all other terms associated with the note are the same. Complete the following Amortization Table for ALL years under the effective interest method. (Round to whole dollars). Please note the titles of the columns in the amortization table. 850,000 THE DUE DATE OF THE NOTE IS DECEMBER 31, 2022.- 720ooo 130000 Date Interest Recognized Cash Interest Discount Amortized Discount Balance Carrying Value -0- -0- 12/31/19 130000 120000 soo) -o- 1/19 (120070 440/2,50009, 05 (12000 – 4250) (13.0006 - 2950) TOSQUDU - 100500) 12/3120 72000 42500 29500 100500 749,500 12/31121 74950 42500 32450 60050 12/31/22 110550 42500 60050 -0 850000

also it asked for journal entries for December 31,2019, December 31,2020, and December 31,2022