Problem 1: (40 points) On December 31 2019, Sunshine Corporation sold some of its product to Moon Company, accepting a 3%, four-year promissory note having a maturity value of $800,000 (interest payable annually on December 31). Sunshine Corporation pays 5% for its borrowed funds. Moon Company, however, pays 8% for its borrowed funds. The product sold is carried on the books of Sunshine at a manufactured cost of $395.000. Assume Sunshine uses a perpetual inventory system. Instructions: Prepare the journal entries to record the transaction on the books of Sunshine Corporation on December 31, 2019. (Assume that the effective interest method is used and PVF.4 -0.73503: PVF. OA 1424 -3.31213). 2. Make all appropriate entries for 2020 and 2021 on the books of Sun Corporation Problem 1: (40 points) On December 31 2019, Sunshine Corporation sold some of its product to Moon Company, accepting a 3%, four-year promissory note having a maturity value of $800,000 (interest payable annually on December 31). Sunshine Corporation pays 5% for its borrowed funds. Moon Company, however, pays 8% for its borrowed funds. The product sold is carried on the books of Sunshine at a manufactured cost of $395.000. Assume Sunshine uses a perpetual inventory system. Instructions: Prepare the journal entries to record the transaction on the books of Sunshine Corporation on December 31, 2019. (Assume that the effective interest method is used and PVF.4 -0.73503: PVF. OA 1424 -3.31213). 2. Make all appropriate entries for 2020 and 2021 on the books of Sun Corporation