View Policies Show Attempt History Current Attempt in Progress On January 1, 2021, The Ayayai Company received a 4-year promissory note that had a face value of $ 1.145.000, and a stated interest rate of 6%. Interest was receivable on January 1 each year. The note was issued to yield an effective interest rate of 8%. The Ayayai Company is publicly traded, uses the effective interest method of amortization for discounts or premiums, and has an April 30 year-end. Click here to view the factor table PRESENT VALUE OF 1 Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) Your answer is correct. Use 1. PV.1 Tables. 2. a financial calculator, or 3. Excel functions to arrive at the amount to record the note receivable. (Round present value factor calculations to 5 decimal places, eg. 1.25125 and the final answer to decimal places, e.g. 58,971) Note receivable $ 1069152 e Textbook and Media List of Accounts Attempts: 1 of 3 used Using multiple attempts will impact your score. 5% score reduction after attempt 2 (b) Your answer is correct. Prepare a note premium / discount amortization schedule. (Round answers to O decimal places, e.g. 58,971.) Schedule of Note Discount Amortization Effective Interest Method Interest Income Discount Amortized Date (d-m-yr) Cash Received Carry 1-Jan-21 $ 1-Jan-22 $ 68700 $ 85532 16832 1-Jan-23 68700 86879 18179 1-Jan-24 68700 88333 19633 1-Jan-25 68700 89904 21204 274800 350648 75848 (c) Prepare the journal entries to record the receipt of the note on January 1, 2021, and any required accrual entries at the company's year-end on April 30, 2021. Finally, prepare the journal entry to record the first cash collection by The Ayayai Company on January 1, 2022. (Round answers to decimal places, eg. 58,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) te Account Titles and Explanation Debit Credit 2021 Notes Receivable 1069152 Cash 1069152 021 > Cash Notes Receivable Interest Income Interest Receivable