Journal entries

Jan.1 2020 15,000,000.00

Cash 1,000,000.00
Note receivable 4,000,000.00
Accumulated depreciation 10,000,000.00
Building 12,000,000.00
gain on sale 2,000,000.00
uneared interest income 1,000,000.00
15,000,000.00
Dec.31 2020
Unearned income 300,000.00
Interest Income 300,000.00
Dec.31 2021
Unearned income 330,000.00
Interest Income 330,000.00
Dec.31 2022
Unearned income 370,000.00
Interest Income 370,000.00
Jan.1 2023
Cash 4,000,000.00
Notes Receivable 4,000,000.00
Face notes recievable 4,000,000.00 Date Interest income
Present Value(4,000,000*.75) 3,000,000.00 Jan. 1 2020 -
Uneared interest income 1,000,000.00 Dec. 31 2020 300,000.00
Dec. 31 2021 330,000.00
Present Value of Note 3,000,000.00 Dec. 31 2022 370,000.00
Cash receive 1,000,000.00
Sale Price 4,000,000.00
Carrying amount(12,000,000-10,000,000) 2,000,000.00
Gain on sale of Building 2,000,000.00
Unearned interest Presen Value
1,000,000.00 3,000,000.00
700,000.00 3,300,000.00
370,000.00 3,630,000.00
- 4,000,000.00