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Recording Entries for Long-Term Note Receivable: Effective interest Method On January 1, 2020, Jacobs Company sells and financed through a $104,000 note, issued by Andress Company. The note is a $104.000, est-bearingne Anders resto repay the $104,000 proceeds on December 31, 2021 The prevailing interest rate on similar notes is 6. Assume that the cost of the land is equal to the fair valor of UV Required Prepare all entries for Jacobs over the note term including any year end adjustments. Use the effective interest method to amortize the discount. Round answers to the nearest whole dollar Date Account Name Dr. Cr jant 2020 Not Receivable 104000 Discount on Note Receivable 193 M Land 0 1,309 M Dec 31, 2020 Cash 4160 O Discount on Note Receivable ORD 0 interest Revenue O 6.240 Dec 31, 2021 Cash 4160 0 D OM Discount on Not Receivable Interest Revenue 2 O OM To record interest on note Dec 31, 2021 Cash 104000 0 Note Receivable 104.000 To record settlement obte . rad Recording Entries for the Discounting of a Note Receivable Aerobic Sports Company completed the following 2020 transactions related to a note receivable. Prepare the journal entries, including any interest earned that Aerobic Sports Company should make on February 1, 2020, and March 1, 2020 Note: Round your answers to the nearest whole dollar. a. February 1, 2020 --Received a $560,000,8%, interest-bearing, six-month note from Temple Company for land that had a carrying value of $168,000 Date Account Name Dr. Cr. Feb. 1, 2020 Note Receivable 560,000 0 Gain on Sale of Land 392,000 Land 168,000 e 0 0 b. March 1, 2020-Discounted the note to Local Bank at a 10% interest rate. Assume the discounting qualifies as a sale, Date Account Name Dr. Cr. March 1, 2020 Interest Receivable 3.733 0 Interest Revenue 0 3,733 To record interest on note March 1, 2020 Cash 559,067 x 0 Loss on Sale of Note . 56,149 X 07 Interest Receivable . 0 3,733 Note Receivable 0 560,000 To record discounting of note -> 4 Check

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