On January $1,2023,$ The Flounder Company received a $4-$year promissory note that had a face value of $$875,000,$ and a stated

interest rate of $6\%.$ Interest was receivable on January $1$ each year. The note was issued to yield an effective interest rate of $8\%.$ The

Flounder Company is publicly traded, uses the effective interest method of amortization for discounts or premiums, and has an April

$30$ year$-$end.

Click here to view the factor table PRESENT VALUE OF $1.$

Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF $1.$

$($@

Use $1.$ PV$\mathrm{.}1$ Tables, $2.$ a financial calculator, or $3.$ Excel functions to arrive at the amount to record the note receivable. $($Round

present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}2512.$ Round PV tables and Excel function answers to O decimal places, e$.$g$.$

$8,971$ and round Financial calculator answer to $2$ decimal places, e$.$g$.89\mathrm{.}71.)$

Using Note receivable

$1.$ PVtables $

$2.$ Financial calculator ~~ $

$3.$ Excel functions $$($b$)$

Prepare a note premium $/$ discount amortization schedule. $($Round answers to $0$ decimal places, e$.$g$.58,971.)$

Effective Interest Method

Date $($d$-$m$-$yr$)$ Cash Received Interest Income Discount Amortized$$ Carrying amount

$1-$Jan$-23$ $

$1-$Jan$-24$ $ $ $

$1-$Jan$-25$

$1-$Jan$-26$

$1-$Jan$-27$

$ $ $Ac$)$

Prepare the journal entry to record the receipt of the note on January $1,2023.($Round answers to O decimal places, e$.$g$.58,971.$

Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No

Entry$$ for the account titles and enter O for the amounts. List all debit entries before credit entries.$)$

Date Account Titles and Explanation Debit Credit

January $1,$

$2023$Prepare any required accrual entry at the company$$s year$-$end on April $30,2023.($Round answers to O decimal places, eg$.58,971.$

Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No

Entry$$ for the account titles and enter O for the amounts. List all debit entries before credit entries.$)$

Date Account Titles and Explanation Debit Credit

April $30,$

$2023$Prepare the journal entry to record the first cash collection by The Flounder Company on January $1,2024.($Round answers to $0$

decimal places, e$.$g$.58,971.$ Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no

entry is required, select $"$No Entry$$ for the account titles and enter O for the amounts. List all debit entries before credit entries.$)$

Date Account Titles and Explanation Debit Credit

January $1,$

$2024$