Preparing Entries and Interest Schedule for Long-Term Note Receivable; Effective Interest Method On July 1, 2020, Stealth Company sold a machine (classified as inventory) that had a list price of $72,000. The customer paid $12,000 cash and signed a three-year, $60,000 note that specified a stated interest rate of 3%. Annual interest on the full amount of the principal is payable each June 30. The principal is payable on June 30, 2023. The market rate of interest for a note of this risk is 10%. Required a. Compute the present value of this note. $ 0 X b. Prepare an effective interest schedule for this note. Stated Interest Date Jul. 1, 2020 Jun 30, 2021 $ Jun 30, 2022 Jun 30, 2023 0 X $ x 0 X Market Discount Note Interest Amortization Carrying Value $ 0 x 0 x $ 0 x OX OX OX OX OX OX OX 0 x c. Prepare all entries required by Stealth for this note through its maturity date, including year-end adjustments. Dr. Cr. OX 0 12,000 0 0 OX 0 x 0 OX 0 0 x 0 0 x 0 Date Account Name Jul 1, 2020 Note Receivable Cash Discount on Note Receivable Sales Revenue Jun 30, 2021 Cash Discount on Note Receivable Interest Revenue Jun. 30, 2022 Cash Discount on Note Receivable Interest Revenue Jun 30, 2023 Cash Discount on Note Receivable Interest Revenue To record interest on note Jun 30, 2023 Cash Note Receivable To record settlement of note 0X 0 X 0 0 OX 0 x 0 0 0 x 0 OX OX 0 0X 0