Revise your calculations based the new information providedbelow and then answer the questions that follow.

A company lends $372,000 to an owner and accepts a three year, 7%note in return. The note was issued on June 1st of the currentyear, and will be due on June 1st of the final year of thenote.

Required:
(a) Prepare the journal entry to be made when the companymakes the loan and accepts the note in return. (If no entryis required for a transaction/event, select "No Journal EntryRequired" in the first account field.)

• Record the 7% note receivable accepted for a loan amount of$372,000.

(b) Calculate the interest revenue to be recordedat the end of each year the note is outstanding.

	Interest revenue December 31, Year 1 December 31, Year 2 December 31, Year 3 June 1, Year 4

(c) Prepare the journal entries to accrue theinterest receivable for each year the note is outstanding.(If no entry is required for a transaction/event, select"No Journal Entry Required" in the first accountfield.)
Dec 31

• Record the interest receivable during the period endingDecember 31 for year 1.
• Record the interest receivable during the period endingDecember 31 for Year 2.
• Record the interest receivable during the period endingDecember 31 for Year 3.

(d) Prepare the journal entry to record receivingthe cash at the note's maturity. (If no entry is requiredfor a transaction/event, select "No Journal Entry Required" in thefirst account field.)
June 01

• Record the receipt of cash on account of 7% notereceivable.