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Prepare a note premium / discount amortization schedule. (Round answers to 0 decimal places, e.g. 58,971. ) Prepare a note premium / discount amortization schedule.
Prepare a note premium / discount amortization schedule. (Round answers to 0 decimal places, e.g. 58,971. ) Prepare a note premium / discount amortization schedule. (Round answers to 0 decimal places, e.g. 58,971.) On January 1, 2023, The Bridgeport Company received a 4-year promissory note that had a face value of $805,000, and a stated interest rate of 6%. Interest was receivable on January 1 each year. The note was issued to yield an effective interest rate of 8%. The Bridgeport Company is publicly traded, uses the effective interest method of amortization for discounts or premiums, and has an April 30 year-end. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) Your answer is correct. Use 1. PV.1 Tables, 2. a financial calculator, or 3. Excel functions to arrive at the amount to record the note receivable. (Round present value factor calculations to 5 decimal places, e.g. 1.2512. Round PV tables and Excel function answers to 0 decimal places, e.g. 8,971 and round Financial calculator answer to 2 decimal places, e.g. 89.71.)
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