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Prepare a Schedule of Note Discount Amortization for Sheridan Company under the effective interest method. (Round answers to O decimal places eg. 5,275.) Date Cash

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Prepare a Schedule of Note Discount Amortization for Sheridan Company under the effective interest method. (Round answers to O decimal places eg. 5,275.) Date Cash Interest (6 % ) Effective Interest (12 % ) Discount Amortized Unamortized Discount Present Value of Balance 12/31/19 $ $ $ $ $ 12/31/20 12/31/21 12/31/22 $ On December 31, 2019, Sheridan Company finished consulting services and accepted in exchange a promissory note with a face value of $835,000, a due date of December 31, 2022, and a stated rate of 6 % , with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 12 %. The following interest factors are provided: Interest Rate Table Factors For Three Periods 6% 12% Future Value of 1 1.19102 1.40493 Present Value of 1 0.83962 0.71178 3.18360 3.37440 Future Value of Ordinary Annuity of 1 2.67301 240183 Present Value of Ordinary Annuity of 1

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