On January 1, 2021, our company gets a loan from the local bank as a note payable in the amount of $122,000 and the principal due in 5 years, annual interest payments (the 1^st payment being due on January 1, 2022), and stated rate equal to our incremental borrowing rate which is 4.6%. This note payable gives the bank an option to convert the note payable into 500 shares of our companys common stock.

Since there is this conversion feature, the bank issued us cash based on a market yield % lower than the stated rate.

Our company didnt know what to do with the cash, so we decided not to recognize it and only recognized the note payable at face value and the same amount of cash in the G/L. The extra cash is set aside until we know where it belongs.

Prepare journal entries and a notes payable table also what portion of the debt is due within 1 year and what portion is non-current?

Im not sure if this amount is needed but the par value of the stock is $0.10