SABIC made a loan to ABC on January 1, 2015, and received in exchange a 6-year, $100,000, note bearing interest at 8 percent annually. The market rate of interest for a note of similar risk is 4 percent. Factor Value @n=6 @Interest Rate 4% @Interest Rate 8% Future Value of 1 1.2653 1.5869 Present Value of 1 0.7903 0.6302 Future Value of Annuity of 1 6.6330 7.3359 Present Value of Annuity of 1 5.2421 4.6229 12. Assume using the net method, determine the value of the note that should be recorded in the SABIC's books on January 1, 2015: a. $188,033.6 b. $120,966.8 c. $81,511.6 d. $100,000. 13. 14. 15. 16. Assume using the gross method, determine the value of the note that should be recorded in the SABIC's books on January 1, 2015: a. $188,033.6 b. $120,966.8 c. $81,511.6 d. $100,000. Using the above information, how much the amount of cash received by SARIC on December 31, 2015: a. $8,000 b. $4,000 c. $2,520.93 d. $3,161.33 Using the above information, determine the amount of interest revenue that should be recognized by SABIC on December 31, 2015: a. $4,838.67 b. $8,838.67 c. $6,520.93 d. $8,703.70 Assume using the net method, what adjusting entry should be made by SABIC on December 31, 2015 before the financial statements can be prepared? A. Notes Receivable Cash 8.000 8,000 b. Cash 4,000 Notes Receivable. 2.520.93 Interest Revenue 6.520.93 Cash 8.000 Notes Receivable 3,161.33 Interest Revenue 4.838.67 d. Notes Receivable Cash. 100,000 100,000