Intermadte 1

Question 17 Not yet answered Marked out of 1.00 t7 Flag question On December 31, 2016. Green Company finished consultation services and accepted in exchange a promissory note with a face value of 200,000I a due date of December 31, 2019, and a stated rate of 10%, with interest receivable at the end of each year. The note is considered to have an appropriate imputed (market) rate of interest of 5%. The following interest factors are provided: Interest Rate Table Factors For Three Periods 5% 10% Future Value of 1 1.15763 1.33100 Present Value of 1 .86384 .75132 Future Value of Ordinary Annuity of 1 3.15250 3.31000 Present Value of Ordinary Annuity of 1 2.72325 2.48685 The adjusting journal entry at 3111211017 for recording amortization of premium on note under the effective interest method will include: O A. Debit notes receivable $8,638, credit Interest Revenue $11,362. 0 B. Debit cash $20,000, credit notes receivable $8,638. 0 C. Debit interest revenue $11,362, credit notes receivable $11,362 0 D. Debit notes Receivable $200,000, credit interest revenue, $20,000