On January 1, 2020, a borrower signed a long-term note, face amount, $240,000; time to maturity, three years; stated rate of interest, 8%. The market rate of interest of 10% determined the cash received by the borrower. The note will be paid in three equal annual installments of $93,127 each December 31 (which is also the end of the accounting period for the borrower).

Required

a. Compute the cash received by the borrower and prepare a debt amortization schedule.

1. Compute the cash received by the borrower. $______.

2. Prepare a debt amortization schedule.

• Round each amount in the table to the nearest whole dollar.
• Use a negative sign for the "Reduction in N.P." amounts.

• b. Provide the required entries for the borrower for the issuance of the note on January 1, 2020, and

  the interest payments in 2020, 2021, and 2022.

• 

Date Cash Interest Expense Reduction in N.P. Carrying Value $ 0 x 0X Jan. 1, 2020 Dec 31, 2020 $ Dec 31, 2021 Dec 31, 2022 Total $ 93,127 93,127 OX 23,159 $ 16,163 8,466 47,788 $ 93,127 0X 0 279,382 0X Date Account Name Dr. Cr. Jan 1, 2020 Cash X Note Payable . X