Problem II (26 pts) On December 31, 2019, Sheffield Company finished consulting services and accepted in...

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Problem II (26 pts) On December 31, 2019, Sheffield Company finished consulting services and accepted in exchange a promissory note with a face value of $860,000, 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: Table Factors For Three Periods Future Value of I Present Value of 1 Future Value of Ordinary Annuity of 1 Interest Rate 6% 12% 1.19102 1.40493 839621 71178 3.18360 3.37440 2.67301 2.40183 Present Value of Ordinary Annuity of 1 Required: (Round to the nearest dollar) 1. Compute the present value of the note and prepare the journal entry required on Sheffield's books at December 31, 2019. (10 pts) wk for PV? -4 Debit Credit Account Note reivable Dscnt an note Note Pay all 860,000 137,927 722,073 -3 Problem II (26 pts) On December 31, 2019, Sheffield Company finished consulting services and accepted in exchange a promissory note with a face value of $860,000, 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: Table Factors For Three Periods Future Value of I Present Value of 1 Future Value of Ordinary Annuity of 1 Interest Rate 6% 12% 1.19102 1.40493 839621 71178 3.18360 3.37440 2.67301 2.40183 Present Value of Ordinary Annuity of 1 Required: (Round to the nearest dollar) 1. Compute the present value of the note and prepare the journal entry required on Sheffield's books at December 31, 2019. (10 pts) wk for PV? -4 Debit Credit Account Note reivable Dscnt an note Note Pay all 860,000 137,927 722,073 -3