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Exam 16: Notes Payable and Notes Receivable

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Question 31

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Notes Receivable Discounted is usually shown in the Current Liabilities section of the balance sheet.

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Question 32

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Compute the maturity value of a 9-month, 9 percent note with a face value of $9,000. (round answer to 2 decimal places)

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Question 33

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The interest rate stated on a note receivable or note payable is always the interest rate for

Compute the maturity value of a 7-month, 6 percent note with a face value of $$9,000. (round answer to 2 decimal places)

The Interest Income account

Find the due date of a 120-day note issued on January 18, 2019.

If the amount due on a note receivable is not collected at maturity,

On May 1, a firm purchased equipment for $10,000, signing a 90-day note bearing interest at 12 percent. The entry to record the payment of the amount due on July 30 is (Assume 360 days in a year.)

A---------- is a business document that lists the goods accepted for transportation by a carrier.

The due date of a 60-day note dated October 15, is

Identify the 5 requirements necessary for a promissory note to be considered a "negotiable instrument".

A(n)----------is a written order that requires the person or business addressed to pay a stated sum of money to another person or firm.

The maturity date of a 90-day note issued May 10 is--------- .

Interest Expense is usually classified as a(n)-----------expense on the income statement.

On April 1, a firm purchased equipment for $5,000, signing a 60-day note bearing interest at 12 percent. The entry to record the payment of the amount at maturity is (Assume 360 days in a year.)

The interest on a $5,000 face value, 3-month note bearing interest at 9 percent would be $1,350.

Compute the maturity value of a 90-day, 8 percent note with a face value of $6,000.

If a note payable overlaps financial reporting periods (years), Interest Expense is recorded only in the year the note is paid.

To obtain cash on delivery, goods may be shipped with a sight draft attached to a(n)----------.

The Gaynor Company had the following transactions involving notes payable during 2019. Record the transactions on page 5 of a general journal. Omit descriptions. Jan. 15 Purchased office equipment from Corporate Outfitters and issued a 180-day, 9 percent note for $16,000. Apr. 10 Borrowed $13,000 at 12 percent from the Guarantee Bank by discounting a 60-day note payable. June 9 Paid the note due Guarantee Bank. July 14 Paid the note due Corporate Outfitters.