Recording a Note Payable Issued for Non$-$Cash Consideration Recording a Note Payable Issued for Non$-$Cash Consideration

Required

Record the entries on January $1$ of Year $1$ and December $31$ of each year$-$end for the following three separate scenarios for the note payable.

a$.$ The principal of $$1,600,000$ is due on December $31$ of Year $2,$ and the note states $5\%$ interest payable each December $31$ over the two$-$year period.

b$.$ The face value of the note payable is $$1,764,800$ and is due on December $31$ of Year $2.$ The note is structured as a zero$-$interest$-$bearing note payable over a two$-$year period.

c$.$ The note is due on December $31$ of Year $3$ with equal payments of $$587,601$ due on each December $31$ over the term of the note. The note will be fully paid upon maturity.

Case One

Case Three

Note: Round your answers to the nearest whole dollar. Recording a Note Payable Issued for Non$-$Cash Consideration

Required

Record the entries on January $1$ of Year $1$ and December $31$ of each year$-$end for the following three separate scenarios for the note payable.

a$.$ The principal of $$1,600,000$ is due on December $31$ of Year $2,$ and the note states $5\%$ interest payable each December $31$ over the two$-$year period.

b$.$ The face value of the note payable is $$1,764,800$ and is due on December $31$ of Year $2.$ The note is structured as a zero$-$interest$-$bearing note payable over a two$-$year period.

c$.$ The note is due on December $31$ of Year $3$ with equal payments of $$587,601$ due on each December $31$ over the term of the note. The note will be fully paid upon maturity.

Case One Case Two

Note: Round your answers to the nearest whole dollar.

Note: Include any net rounding difference for Note Payable, Net in the interest expense amount for Year $2.$

Required

Record the entries on January $1$ of Year $1$ and December $31$ of each year$-$end for the following three separate scenarios for the note payable.

a$.$ The principal of $$1,600,000$ is due on December $31$ of Year $2,$ and the note states $5\%$ interest payable each December $31$ over the two$-$year period.

b$.$ The face value of the note payable is $$1,764,800$ and is due on December $31$ of Year $2.$ The note is structured as a zero$-$interest$-$bearing note payable over a two$-$year period.

c$.$ The note is due on December $31$ of Year $3$ with equal payments of $$587,601$ due on each December $31$ over the term of the note. The note will be fully paid upon maturity.

Case One

Case Two

Case Three

Note: Round your answers to the nearest whole dollar.