Question 5 On December 31, 2020 Black Cat Corporation (BCC) finished providing consultation services and due to the customer finding themselves in a cash shortage, agreed to accept a three-year promissory note in exchange for their services. The promissory note has a face value of $600,000 and a stated rate of 5% with interest being paid at the end of each year. The fair value of the consultation services is not readily available and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10% Required (16 marks): a) Compute the present value of the note receivable. (Hint: remember to calculate the amount of annual interest paid at the rate stated in the note and then present value it using the market rate (or imputed rate). b) Prepare journal entries for the note receivable on the following dates assuming that BCC uses the effective interest method. (Hint: it may be easiest to prepare an amortization table first.) a. December 31, 2020 b. December 31, 2021 c. December 31, 2022 d. December 31, 2023 Question 5 On December 31, 2020 Black Cat Corporation (BCC) finished providing consultation services and due to the customer finding themselves in a cash shortage, agreed to accept a three-year promissory note in exchange for their services. The promissory note has a face value of $600,000 and a stated rate of 5% with interest being paid at the end of each year The fair value of the consultation services is not readily available and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10% Required (16 marks): a) Compute the present value of the note receivable. (Hintremember to calculate the amount of annual interest paid at the rate stated in the note and then present value it using the market rate (or imputed rate). b) Prepare journal entries for the note receivable on the following dates assuming that BCC uses the effective interest method. (Hint: it may be easiest to prepare an amortization table first.) a. December 31, 2020 b. December 31, 2021 C. December 31, 2022 d. December 31, 2023 1700