On January 1 2009 Pink Company finished consultation services and accepted in

On January 1 2009 Pink Company finished consultation services and accepted in exchange a promissory note with a face value of $400000 a due date of
December 31 2012 and a stated rate of 8% with interest receivable at June 30th and December 31st. The fair value of the services is not readily determinable
and the note is not readily marketable. Under the circumstances the note is considered to have an appropriate imputed rate of interest of 10%. (Hint: the
imputed rate is similar to the market rate).
a) Determine the present value of the note.
b) Prepare a Schedule of Note Discount/Premium Amortization for Pink Company under the effective interest method. (Round to whole dollars.)
c) Prepare any necessary journal entries in 2009 to record the issuance of the note and any interest journal entries that may be required based on the terms of
the note.
d) Prepare any necessary journal entries in 2012.