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M CorD. makes a loan to N Co. and receives in exchange a three-year, $15,000 note bearing interest at 10 percent annually. The market rate
M CorD. makes a loan to N Co. and receives in exchange a three-year, $15,000 note bearing interest at 10 percent annually.
The market rate of interest for a note of similar risk IS 12 percent.
Additional information:
PV of Interest for 12% is 2.40183
PV of Principal for 12% is 0.71178
Note: Provide working notes
Requred:
Pass
journal entries that M Corp would record on the receipt of the note and the receipt of interest revenue
on the note at present value?
M CorD. makes a loan to N Co. and receives in exchange a three-year, $15,000 note bearing interest at 10 percent annually.
The market rate of interest for a note of similar risk IS 12 percent.
Additional information:
PV of Interest for 12% is 2.40183
PV of Principal for 12% is 0.71178
Note: Provide working notes
Requred:
Pass
journal entries that M Corp would record on the receipt of the note and the receipt of interest revenue
on the note at present value?
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