1. On January 1, 2021, your firm provided the services to the high-end clientele and accepted in exchange a promissory note with a face value of $500,000. The note will be matured on January 1, 2024. This note carries a stated rate of 10% and pays the interest at the beginning of each year (first interest payment will be paid on January 1, 2022). The note is considered to have a market rate of 8%.

a. Prepare a schedule of note amortization for this note using the effective interest method b. Prepare journal entries for this note from January 1, 2021 to January 1, 2024 using the schedule of part above. c. Prepare a schedule of note amortization for this note using the straight-line method