Malone issued three Notes Receivable during the year, Record the necessary journal entries for the three issuances below: 1. On January 1, 2020 sold merchandise in exchange for a 4 year, $50,000, 4% note. The normal borrowing rate for this client is 8%. Interest will be received annually. (This note is like a bond, you will need to use TVM and make an amortization table)
2. On January 1, 2020 Malone sold merchandise in exchange for a $125,000, 5 year zero interest note. The normal borrowing rate for this client was 4%. You will need to use TVM and make an amortization table
3. On July 1, 2020 sold merchandise in exchange for a 9 month, $75,000, 6% note. Interest will be paid at maturity. This is a regular note, no TVM or amortization table needed.
4. Assuming Malone records interest annually, record the interest entry on 12/31/20 for all three of the above notes.
a. 4% note
b. Zero interest note
c. 6% note.