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Ayayai Corporation, a publicly-traded company, agreed to loan money to another company. On July 1,2023,...

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Accounting

Ayayai Corporation, a publicly-traded company, agreed to loan money to another company. On July 1,2023, the
company received a five-year promissory note with a face value of $501,000, paying interest at a face rate of 5%
on July 1 each year. The note was issued to yield an effective interest rate of 6%. Ayayai used the effective
interest method of amortization for discounts or premiums, and the company's year-end is September 30.
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)
Use 1. PV Tables, 2. a financial calculator, and 3. Excel functions to arrive at the amount to record the note
receivable. (Round present value factor calculations to 5 decimal places, e.g.1.2512. Round PV tables and Excel
function answers to 0 decimal places, e.g.8,971 and round Financial calculator answer to 2 decimal places, e.g.
89.71.)
Excel function Prepare a schedule of note premium / discount amortization schedule. (Round answers to 0 decimal places, e.g.58,971.)
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