Using the information in E15.15, show how Phillips Corporation’s income statement and balance sheet report the impact of this note for the years ended December 31, 2019, and December 31, 2020.

Data from E15.15

On November 1, 2019, Phillips Corporation raised $2,382,041.19 by issuing a five-year, $3,500,000 noninterest-bearing note. The amortization table for the note follows. Make the entries for the note from November l, 2019, to December 31, 2020.

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Period Payment Interest 11/1/19 11/1/20 $0.00 $190,563.30 11/1/21 0.00 205,808.36 11/1/22 0.00 222,273.03 0.00 240,054.87 0.00 259,259.25 11/1/23 11/1/24 Discount Left Face Value Carrying Value $2,382,041.19 $1,117,958.81 $3,500,000 927,395-51 3,500,000 2,572,604.49 721,587.15 3,500,000 2,778,412.85 499,314.12 3,500,000 3,000,685.88 259,259.25 3,500,000 3,240,740.75 3,500,000 3,500,000.00 0.00