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On January 1 , 2 0 2 3 , The Flounder Company received a 4 - year promissory note that had a face value of
On January The Flounder Company received a year promissory note that had a face value of $ and a stated
interest rate of Interest was receivable on January each year. The note was issued to yield an effective interest rate of The
Flounder Company is publicly traded, uses the effective interest method of amortization for discounts or premiums, and has an April
yearend.
Click here to view the factor table PRESENT VALUE OF
Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF
@
Use PV Tables, a financial calculator, or Excel functions to arrive at the amount to record the note receivable. Round
present value factor calculations to decimal places, eg Round PV tables and Excel function answers to O decimal places, eg
and round Financial calculator answer to decimal places, eg
Using Note receivable
PVtables $
Financial calculator ~~ $
Excel functions $b
Prepare a note premium discount amortization schedule. Round answers to decimal places, eg
Effective Interest Method
Date dmyr Cash Received Interest Income Discount Amortized Carrying amount
Jan $
Jan $ $ $
Jan
Jan
Jan
$ $ $Ac
Prepare the journal entry to record the receipt of the note on January Round answers to O decimal places, eg
Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No
Entry for the account titles and enter O for the amounts. List all debit entries before credit entries.
Date Account Titles and Explanation Debit Credit
January
Prepare any required accrual entry at the companys yearend on April Round answers to O decimal places, eg
Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No
Entry for the account titles and enter O for the amounts. List all debit entries before credit entries.
Date Account Titles and Explanation Debit Credit
April
Prepare the journal entry to record the first cash collection by The Flounder Company on January Round answers to
decimal places, eg Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no
entry is required, select No Entry for the account titles and enter O for the amounts. List all debit entries before credit entries.
Date Account Titles and Explanation Debit Credit
January
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