H I J K L M N Example 14.5: IN Min Corporation, a calendar-year company, borrowed $1,000,000 on August 15, 2015. The note specifies an 8% interest rate and is due in three years. Interest is paid quarterly. The fiscal year ends on December 31. The current market rate is 12%. Interest is compounded quarterly. JN Min prepares quarterly Tinancial statements. Prepare the amortization table for the note and the journal entries for 2015 Excel Formula NWY PVPMT Given 12 3.00% -20,000 Solve for PV 900 460 FV -1,000,000 10 -PV10.03.12-20000 - 1000000) When we issue this notes payable, we promise to pay (1) Cash interest every quarter Face Value of the Notes Payablex Gaurterly stated rate (2) Principal of $1,000,000 at the end of the 3rd year Every Quarter we will pay cash interest Quarterly Market Interest Rate 17 Annual Market Interest Rate 18 12% 19 Annual Stated interest Rate Quarterly stated interest Rate Ooh de 120 MN 12 When we issue this notes payable, we promise to pay (1) Cash Interest every quarter Face Value of the Notes Payable x Qaurterly stated rate (2) Principal of $1,000,000 at the end of the 3rd year 16 Every Quarter we will pay cash interest Quarterly Market interest Rate 17 Annual Market Interest Rate 12% 19 Annual Stated interest Rate Quarterly stated interest Rate 21 Years Number of Quarters Face Value of the Notes Payable ENR233 Present Value of the Notes Payable es payables sued at a discount of Face Value Present Value of the Notes Payable