Question: PART B: Long-term Note Receivable On January 1, 2012, Jackson Corporation finished consultation services and accepted in exchange a note with a face value of

PART B: Long-term Note Receivable On January 1, 2012, Jackson Corporation

PART B: Long-term Note Receivable On January 1, 2012, Jackson Corporation finished consultation services and accepted in exchange a note with a face value of $500,000, a due date of December 31, 2014, and a stated interest rate of 5%, with interest due at the end of each year beginning on December 31, 2012. The note has an effective rate of interest of 10%. Present value factors are provided below. Factors for Three Periods 5% 10% Present value of a single sum 0.86384 0.75132 Present value of an ordinary annuity 2.72325 2.48685 i. Prepare Jackson's journal entry to record the receipt of the note on January 1, 2012. Prepare Jackson's journal entry to record the receipt of interest on December 31, 2012. ii. iii. Determine the carrying value of the note receivable on December 31, 2013

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