Accounting for Notes Payable.docx

Accounting for Notes Payable.docx - Accounting for Notes...

This preview shows page 1 - 2 out of 3 pages.

Accounting for Notes Payable 16-1 – Determine whether an instrument meets all the requirements of negotiability Uniform Commercial Code (UCC) – Negotiable instrument – a financial document, containing a promise or order to pay, that meets all the requirements of the UCC in order to be transferable to another party. The requirements by the UCC for a instrument to be transferable are as follows: 1. Be in writing and must be signed by the marker or drawer 2. Contain an unconditional promise or order to pay a definite amount of money 3. Be payable either on demand or at a future time that is fixed or that can be determined 4. Be payable to the order of a specific person or bearer 5. Clearly name or identify the drawee if addressed to a drawee Example negotiable interments: checks and promissory notes Promissory note – a written promise to pay a certain amount of money at a specific future time. Interest – the fee charged for the use of money Interest equation: Interest = Principal X Rate X Time
Image of page 1

Subscribe to view the full document.

Image of page 2
  • Spring '17
  • Promissory note, Negotiable instrument, Uniform Commercial Code, $4,000

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern