1. ABC Corp received $100,000 of 8% term note receivable on January 1, 2017, due on January 1, 2022, with interest receivable each July 1 and January 1. Market interest rate for the borrower is 10%. Calculate the present value and complete the amortization table.

- Face value: 100,000

- Stated interest rate: 8% - Market interest rate: 10% - 5 years, semi-annual interest payments

	Cash	Interest Rev	Amortization (Premium or Discount)	Carrying amount of Note
Date of issuance	--	--	--
2017 Jul 1
2018 Jan 1
2018 Jul 1
2019 Jan 1
2019 Jul 1
2020 Jan 1
2020 Jul 1
2021 Jan 1
2021 Jul 1
2022 Jan 1

1. Journal entry on the date of issuance (cash payment, recognition of note receivable)

2. Journal entry on 7/1 for recording interest receivable.

3. Journal entry on 12/31 for recording interest receivable.