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Examples of Transactions related to receivables: Zero interest note Kohl Company loaned $66,116 to Hemingway, Inc, accepting Hemingway's 2-year, $80,000, zero-interest-bearing note. The implied interest rate is 10%. Prepare Kohl's journal entries for the initial transaction, recognition of interest each year, and the collection of $80,000 at maturity. Valuing an interest bearing note and using the effective interest On December 31, 2016, Green Company finished consultation services and accepted in exchange a promissory note with a face value of $800,000, a due date of December 31, 2019, and a stated rate of 5%, with interest receivable at the end of each year. The market rate of interest is 10%. (a) Determine the present value of the note. (b) Prepare a Schedule of Note Discount Amortization for Green Company under the effective interest method. (Round to whole dollars.) (c) journalize!

Examples of Transactions related to receivables: Zero interest note Kohl Company loaned $66,116 to Hemingway, Inc, accepting Hemingway's 2-year, $80,000, zero-interest-bearing note. The implied interest rate is 10%. Prepare Kohl's journal entries for the initial transaction, recognition of interest each year, and the collection of $80,000 at maturity. Valuing an interest bearing note and using the effective interest On December 31, 2016, Green Company finished consultation services and accepted in exchange a promissory note with a face value of $800,000, a due date of December 31,2019 , and a stated rate of 5%, with interest receivable at the end of each year. The market rate of interest is 10%. (a) Determine the present value of the note. (b) Prepare a Schedule of Note Discount Amortization for Green Company under the effective interest method. (Round to whole dollars.) (c) journalize

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