PROBLEM #2(worth 12%) Notes Receivable-SHOW ALL YOUR wORK! On December 31, 20x4, Kay Company sold a building that had an original cost of S750,000 plus a promissory note with a and a stated rate of 5%, with interest receivable December 3 1 of each year beginning December 31, 20X5. Under the circumstances, the note is considered to have an appropriate rate of interest of 7%. and a book value of $400,000. In exchange, they accepted $20,000 in cash face value of $400,000, a due date of December 31, 20x6, 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