On December 31, 2009, TERVO Company accepted Rudolph Company $20,000, 3-year note, paying 6 percent annually on December 31, as full payment for a specialty piece of equipment. The market rate of interest for similar notes is 10 percent. The following data is provided:

Instructions (a) (1) Determine the present value of the note. (Show calculations) and (2) make the appropriate journal entry for TERVO Company on December 31, 2009. Round answers to the nearest dollar (b) Make the appropriate journal entry for TERVO Company on December 31, 2010. Round answers to the nearest dollar (show calculation)
(c) Make the appropriate journal entry for TERVO Company on December 31, 2011. Round answers to the nearest dollar (show calculation)
(d) Make the appropriate journal entry for TERVO Company on December 31, 2012. Assuming the note (and interest) is paid in full on that date (show calculations)

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Interest Rate Table Factors For Three Periods Future Value of S1 Present Value of $1 Future Value of Ordinary Annuity of S1 Present Value of Ordinary Annuity of S1 690 1.19102 83962 3.18360 2.67301 1000 1.33100 75132 3.31000 2.48685