1........On January 1, 2015, Oxford Company finished consultation services and accepted in exchange apromissory note with a face value of $500,000 and a due date of December 31, 2017.The stated rate of interest is 10% with interest receivable at the end of each year through 12/31/17.Assume an effective interest rate of 5% is implicit in the agreed-upon price.The effective amortization method is used

Oxford's journal entry on 1/1/15 will record approximately what amount of service revenue?

Select one:

a.$500,000

b.$450,000

c.$562,171

d.$437,829

e.$568,081

2.........On January 1, 2015, Oxford Company finished consultation services and accepted in exchange a promissory note with a face value of $600,000 and a due date of December 31, 2017. The stated rate of interest is 5% with interest receivable at the end of each year through 12/31/17. Assume an effective interest rate of 10% is implicit in the agreed-upon price. The effective amortization method is used.

Oxford's interest revenue to be reported on the 2015 income statement is:

Select one:

a.$30,000

b.$60,000

c.$52,540

d.$164,603

e.$175,321