0% interest $124,905 promissory note payable to Gallatin with the following terms. Scenario 2: Loan terms. The note payable terms requires 3 equal payments of $41,635 on December 31 each year. The current market interest rate for similar loans is 12%. nstructions: Show your calculations! ) Detemine the fair market value of the note > 2) Record Bobcats joumal entries for 2020. Cash Interest Discount Unamortized Note Note Date Payment Expense Amortized Discount Balance Carrying Value 1/01/20 24,905 124,905 $ 100,000
0% interest $124,905 promissory note payable to Gallatin with the following terms. Scenario 2: Loan terms. The note payable terms requires 3 equal payments of $41,635 on December 31 each year. The current market interest rate for similar loans is 12%. nstructions: Show your calculations! ) Detemine the fair market value of the note > 2) Record Bobcats joumal entries for 2020. Cash Interest Discount Unamortized Note Note Date Payment Expense Amortized Discount Balance Carrying Value 1/01/20 24,905 124,905 $ 100,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 14RE: On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment....
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