On January 1,2020 , a borrower signed a long-term note, face amount, \(\$ 100,000\); time to maturity, three years; stated rate of interest, \(8 \%\). The market rate of interest of \(10 \%\) determined the cash received by the borrower. The note will be paid in three equal annual installments of \(\$ 38,803\) each December 31 (which is also the end of the accounting period for the borrower).

Required

a. Compute the cash received by the borrower and prepare a debt amortization schedule.

b. Provide the required entries for the borrower for the issuance of the note on January 1, 2020, and the interest payments in 2020, 2021, and 2022.