Question: On Jan 1 2022, Jerry Co. accepted a 12% note, dated jan 1, 2022, with a face amount of $2,480,000 in exchange for cash. The

On Jan 1 2022, Jerry Co. accepted a 12% note, dated jan 1, 2022, with a face amount of $2,480,000 in exchange for cash. The note is due in 10 years. For notes of similar risk and maturity, the market interest rate is 14%. Interest is paid each dec. 31. Requirement A. Determine the present value of the note at January 1, 2022.

B. Prepare the journal entry at the issuance of the note.

C. Prepare the journal entry to record the interest revenue for the first 2 years.

Prepare journal entry to record the interest revenue for Dec. 31,2023

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