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Determine the present value of the note

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Question: On July 1, 2020 Miner Company sold $75,000 of merchandise to a customer and agreed to accept a $75,000, 4%, two-year note. The market rate of interest is 6%. The note required annual interest payments each June 30, and the principal was due on June 30, 2022. The annual reporting period for Miner Company ends June 30.

Required: - Determine the present value of the note.

- Record the initial sale transaction, the interest payment each June 30 and the loan repayment on June 30, 2022. Use the gross method to record the note.

Reference no: EM132741798

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