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please be clear and use the same order in this piece of paper. thank you FACTS: At the beginning of 2021 (January 1, 2021), LENDER
please be clear and use the same order in this piece of paper. thank you FACTS: At the beginning of 2021 (January 1, 2021), LENDER Company made a loan to BORROWER Company and LENDER received in exchange from BORROWER a 3-year, S200,000 note (receivable) with a stated rate of interest of %. The market rate of interest for a note receivable with similar risk is currently 6%. Present value calculation! PV of principal (lump sum): $ PV of yearly cash interest: $ S [DRCash Date [CR]Interest Revenue [DR]Discount Amortized Carrying Amount of NR Date of issue End Year 1 End Year 2 End Year 3 Journal entries: Initial (date of issue) Entry End of Year 1 DR: DR: DR: CR: CR: CR: End of Year 1 NR less: Disct. on NRC Balance Sheet presentation: Date of Issue NR less: Discount on NR Net NR Discount on NR Net NR FACTS: At the beginning of 2021 (January 1, 2021), LENDER Company made a loan to BORROWER Company and LENDER received in exchange from BORROWER a 3-year, S200,000 note (receivable) with a stated rate of interest of %. The market rate of interest for a note receivable with similar risk is currently 6%. Present value calculation! PV of principal (lump sum): $ PV of yearly cash interest: $ S [DRCash Date [CR]Interest Revenue [DR]Discount Amortized Carrying Amount of NR Date of issue End Year 1 End Year 2 End Year 3 Journal entries: Initial (date of issue) Entry End of Year 1 DR: DR: DR: CR: CR: CR: End of Year 1 NR less: Disct. on NRC Balance Sheet presentation: Date of Issue NR less: Discount on NR Net NR Discount on NR Net NR
please be clear and use the same order in this piece of paper. thank you
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