o Problem 1: On 1/1/11 your client received a 14 year note for $150,000 in exchange for services rendered. The note calls for an annual payment of interest on 12/31 at a contractual (stated) rate of 6%. Given the credit standing of the customer, an interest rate of 12.25% has been imputed as the effective rate. The principal amount of the note is due at maturity.
* Part A- At what amount should the sale be recorded on 1/1/11? NOTE: Enter the data above in four cells, and then use the appropriate financial function in your software to compute present value, rather than formulas from present value tables. The PV cell(s) should reference only data cells, not show actual amounts.
* Part B- Prepare an amortization schedule for the Note Receivable using the following
Date Cash Received Interest Revenue Discount Amortized Carrying Value