Questions 4-8 USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (5) QUESTIONS:

Pitchfork, Inc. sold merchandise to Min Corporation on June 1, 2019 and accepted an interest-bearing note with an 8% APR. Min agreed to make annual payments of P&I in the amount of $27,000 per year for 5 years with the first payment being made immediately. The remaining payments are to be remitted each June 1^st. Pitchforks year-end is December 31^st. Mins normal cost to borrow is 8%.

Required:

Determine the Face Value of the note receivable that Pitchfork would recognize on Jun 1, 2019: $____________________________

(round your answer to the nearest whole dollar. Do not use commas or dollar signs when recording your answer.)

Question #5

Using the information presented in #4 above, determine the Interest Revenue that Pitchfork will recognize for the year ended Dec 31, 2020 on their Income Statement: $________________________

Question #6:

Using the information in #4 above, answer the next (3) questions by preparing the Balance Sheet as of Dec 31, 2019:

Current Assets:

Interest Receivable $___________________

Note Receivable $___________________

Long-Term Investments:

Note Receivable $___________________

Determine the balance in the Interest Receivable account as of Dec 31, 2019: $___________________

Question #7:

Using the information presented in #4 above, determine the current maturity of the long-term note receivable. (I.e. how much principal will be repaid in 2020 and therefore should be classified as a current asset.)

Question #8:

Using the information presented in #4 above, determine the balance of the Note Receivable that should be classified as a Long-Term Investment (I.e. the balance of the note receivable that will not be repaid within the next 12 months from the balance sheet dated Dec 31, 2019.)