Notes receivable discounted account
WebDec 31, 2016 · The note receivable discounted should be deducted from the total notes receivable with disclosure of contingent liability. Problem 1-9 (AICPA Adapted) East Company reported the following current assets ar year-end: Cash 3,200, Accounts receivable 3,000, Inventory 2,800, Prepaid insurance 200, Total current assets 9,200, WebAt the date of the discounting, the note receivable discounted account should be. 16 June 1, 2024, Charity Company loaned P500,000 on a 12% note, payable in five equal annual installments of P100,000 beginning January 1, 2024. Interest on the note is payable on the first day of each month beginning July 1, 2024.
Notes receivable discounted account
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WebJun 1, 2024 · A note receivable is a written promise to receive a specific amount of cash from another party on one or more future dates. This is treated as an asset by the holder … Webaccount but will merely note on the face of the balance sheet the amount of notes receivable discounted but still outstanding. QUESTIONS: Based on the above and the result of your audit, answer the following: 1. At what amount on the current assets section of the balance sheet as of December 31, 2005 will Notes Receivable-trade be carried? a ...
WebAA Company will still be included in the balance of “Notes Receivable” since “Notes Receivable-Discounted” account will be credited upon discounting. If the question is Notes Receivable that will be reported in the balance sheet, the Notes Receivable – Discounted will be excluded from the total Notes Receivable with disclosure of ... WebNov 13, 2024 · Accounting for Discounted Note Receivable Step 1: Calculate the maturity value: it is the amount which the company expects to collect from the borrower. It... Step …
WebDec 6, 2024 · Notes receivable are a balance sheet item that records the value of promissory notes that a business is owed and should receive payment for. A written … WebJan 18, 2015 · Using the present value of the $100,000 face value note we'll work out an amortization schedule and report the journal entries to recognize the note, report ...
WebAccounts Description Debit Credit Explanation; April 1, 2024: Notes Receivable: 600,000 Discount on Notes Receivable 59,684 $600,000 - $540,315.55 Construction Revenue 540,316 Dec31, 2024: Cash: 27,000 $36,0008 * (9/12) April 1 - December 31, 2024 Discount on Notes Receivable: 13,524
WebMar 7, 2024 · Notes receivable are recorded as an asset account for the amount owed by the note “maker,” also known as the debtor. Key aspects like time frame, formal … dfw admirals club lounge terminal aWebJun 3, 2024 · Accounting questions and answers; On June 3, 20x1, Alaska State Company received a $5,600, 60-day, 12 percent note from Samuel Adams, a customer whose account was past due. The note was discounted on June 18, 20X1 at the Second State Bank and Trust. The bank charged a discount rate of 14% Required: 1. Prepare the journal entries … chuys on 28th stWeb11 note receivable bearing a reasonable interest rate is sold to a bank wit recourse. At the date of the discounting, the note receivable discounted account should be 16 June 1, … dfw adoptionWebAccounts and notes receivable and financing receivables, including allowances for credit losses and impaired loans Shareholder and other receivables Discounts or premiums on … dfw adventureWebThe note receivable discounted account is reported as. A. Contra asset account for the proceeds from the discounting transaction. B. Contra asset account for the face amount … dfw advanced parkingWebreceivable discounted account was appropriately credited. The note receivable discounted account should be rep orted as a. Contra asset account for the proceeds from the discounting transaction b. Contra asset account for the face amount of the note c. Liability account for the proceeds from the discounting transaction d. chuys on 7th stWebBecause the note yields a higher rate (9%) than it pays (8%), the note should have a discount. Since the note has a stated rate of 8%, the annual payments will be based on the present … chuys open