Question 1 (13 points) On January 1, 2021, Ramallah Beauty-Inn Company purchased a building from Nabali Development Company having a cash purchase price of $120,000. Ramallah signed a three-year note having a maturity value of $151,165 and no stated interest rate. The market rate of interest for a note of similar risk is 8 percent. Required 1) Prepare the necessary journal entry on Ramallah's books to record the issuance of the note. (3 points) Account Note payabl Payable (Dr) Intrest pays Expe Note pe Cash Debit Credit 151,165 31,165 155 120,00 2) Prepare a Schedule of Note Discount Amortization for Ramallah Company under the effective interest method. (Round to whole dollars). (6 points) Interest Paid Interest Expense Date Jan.1, 2021 Discount Amortization Carrying value of Note Dec.31, 2021 31,18537 31,15 3200 Dec.31, 2022 Dec.31, 2023 1145 $1,165 3206 3145 3) Assume that on January 1, 2021, Ramallah Co. decided to use the fair value option for this payable. At December 31, 2021, the fair value of this notes payable was $142,800. (4 points) Fill in the blanks 1. The amount of unrealized gain/ (loss) is S 2. $365. In which financial statement should this gain/(loss) be reported? Balance sheet. In which section of the financial statement should this gain/(loss) be 3. reported? Other Compenhisue Income