On June 1,Year 1,Broadway Financing agrees to loan Choctaw Investment Group $800,000 on a non-interest bearing note for four years.The current market interest rate is 11%.
Required:
1.What are the proceeds of the note?
2.Prepare the journal entry to record the issuance of the note.
3.Prepare the adjusting journal entries for December 31 Year 1 and Year 2.
4.What is the carrying value of the note at the end of Year 2?
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