How would you put it in a amortization table?
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...
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On August 1, 2022, Nelson Corp. sold inventory in exchange for a 2-year non-interest-bearing note having a face value of $26,000. The present value of this note has already been determined to be $20,727.
12% is a reasonable cost of borrowing for non-interest-bearing notes of this nature. The note’s face value will be paid back on August 1, 2024. Nelson Corp. has a calendar year-end, uses the effective interest method, and uses the periodic inventory system.
How would you put it in a amortization table?
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