Question
On January 1, 2021, TheConcodCompany received a4-year promissory note that had a face value of $825,000, and a stated interest rate of6%. Interest was receivable
On January 1, 2021, TheConcodCompany received a4-year promissory note that had a face value of $825,000, and a stated interest rate of6%. Interest was receivable on January 1 each year. The note was issued to yield an effective interest rate of8%. TheConcordCompany is publicly traded, uses the effective interest method of amortization for discounts or premiums, and has an April 30 year-end.
- How to calculate note receivable?
- How to do a note premium / discount amortization schedule?
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Advanced Accounting
Authors: Debra C Jeter, Paul K Chaney
5th Edition
1118022297, 978-1118022290
