on january 1, 20x1 an entity issues a 3 year non interest bearing note payable amounting to 1,200,000 in exchange for land. the principal on note is due in three equal annual installment of 400,000 payable every December 31. The effective interest rate on january 1, 20x1 is 17%.

a. compute for current and non current portions of the note payable on december 31, 20x1.

b. provide all the journal entries during the term of note payable.