Question
On 1/1/2031, Chi Corp. makes a loan to Smith Co. and receives in exchange a four-year, $100,000 note bearing interest at 8 percent annually. The
On 1/1/2031, Chi Corp. makes a loan to Smith Co. and receives in exchange a four-year, $100,000 note bearing interest at 8 percent annually. The market rate of interest for a note of similar risk is9 percent.
What is the journal entry by Chi Corp. to record the payment for the note receivable? Your answer must include the value of the note, value of Discount on Notes Receivable and Cash payment?
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Step: 1
Solution Fair value of note 1000008 Cumulative PV factor at 9 fo...
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Accounting Volume 2
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren
2nd Canadian edition
176501452, 978-0176501457, 978-0176509743
