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On January 1, 2016, Domino Incorporated provides services to Jon Jon Associates in return for a...

On January 1, 2016, Domino Incorporated provides services to Jon Jon Associates in return for a $400,000, 2 year, zero interest note maturing on December 31, 2017   The normal borrowing rate for Jon Jon is 6%.

1) Calculate the present value of the note receivable.

2) Prepare the journal entry to record the services on Domino's book

3) Prepare and amortization schedule using the effective interest method

4) prepare the journal entry to record interest revenue for the first year

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