Question: On December 31, 2017, Roker, Inc. reported notes receivable of $63,930,000. This amount represents the present value of future cash flows (both principal and interest)

On December 31, 2017, Roker, Inc. reported notes receivable of $63,930,000. This amount represents the present value of future cash flows (both principal and interest) discounted at a rate of 11.12% per annum. The schedule of collections of the receivables is provided next:

Assume that the interest due is paid along with the face value of the receivables at the end of each year.
Required:
Provide journal entries to record the interest received and the notes receivable collected in each year.

S in thousands) Year Ending December 2018 2019 Collections $20,724 15,896 11,559 7,179 8,559 13 $63,930 2021 2022 7

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