PROBLEM #2(worth 12 %) Notes Receivable-SHOW ALL YOU RV ORK! On December 31, 20x4, Kay Company sold a building that had an original cost of $750,000 and a book value of $400,000. In exchange, they accepted plus a promissory note with a face value of $400,000, a due date of December 31, 20x6, and a stated rate of5% December 31, 20X5. Under the circumstances, the appropriate rate of interest of 7%. , with interest receivable December 31 of each year beginning note is considered to have an Instructions (a) Prepare Kay's journal entry to record the transaction on December 31, 20X4. (b) Prepare all the journal entries (if any) that Kay would record over the life of the