Problem 7-6 Notes recelvable; solving for unknowns (L07-7) Cypress Oil Company's December 31, 2018, balance sheet listed $1,074,000 of notes receivable and $24.600 of interest receivable included in current assets. The following notes make up the notes receivable balance: Note 1 Dated 8/31/2018. principal of $450,000 and interest at 12% due on 2/28/2019 Note 2 Dated 6/30/2018, principal of $330.000 and interest due 3/31/2019. Note 3 $300,000 face value noninterest-bearing note dated 9/30/2018, due 3/31/2019. Note was issued in exchange for merchandise The company records adjusting entries only at year-end. There were no other notes receivable outstanding during 2018, Required: 1. Determine the rate used to discount the noninterest-bearing note. 2. Determine the explicit interest rate on Note 2 3. What is the amount of interest revenue that appears in the company', 2018 income statement related to these notes