xample 14.5: JN Min Corporation, a calendar-year compary, borrowed $1,000,000 on August 15, 2015. The note speciffes an 8% interest rate and is due in three years. Interest is paic uarterly. The fiscal year ends on December 31 . The current market rate is 12%. Interest is compounded quarterly. JN Min prepares quarterly financial statements. Prepare the mortization table for the note and the journal entries for 2015. \begin{tabular}{lccccccc} & N & IV & PV & PMT & FV & Excel Formula \\ \hline Given & 12 & 3,00% & & 20,000 & 1,000,000 & & \\ Solve for PV & & & 900,460 & & & =PVI0.03,12,-20000, 1000000} \end{tabular} When we issue this notes payable, we promise to pay: (1) Cash interest every quarter = Face Value of the Notes Payable x Qaurterly stated rate (2) Principal of $1,000,000 at the end of the 3rd year Every Quarter. we will pay cash interest The notes payable is issued at a discount of $99.540.00= Face Value - Present Value of the Notes Payable Face Value of the Notes Payable