Brandon Corporation made a loan to Terrace Bay Investments. On October 1, 2020, the

company received a promissory note that paid interest on an annual basis. Brandon uses the

effective interest method in accounting for notes receivable. Other details about the loan

follow:

Maturity value of promissory note $ 475,000

Number of years in loan term 5

Interest paid on the note 7%

Market rate of interest for a note of similar risk 8%

Calculate the present value of the note, and prepare the journal entry required by

Brandon on October 1, 2020.

Prepare an amortization schedule for the note

Prepare any journal entries required by Brandon on its year end date of September

30, 2021.

Prepare the journal entry for the payment of interest to Brandon on October 1,

2021.