accounting 8

accounting 8 - Chapter8 StudyObjective5 BriefExercise7...

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Click to edit Master subtitle style  4/7/11 Chapter 8 Study Objective 5 Brief Exercise 7 ShaTasha Harris Baron Bown Accounting 2101 July 6, 2010
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 4/7/11 Study Objective 5 ² Describe the entries to record the  disposition of notes receivable.
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 4/7/11 Types of Notes Receivable A note is  honored  when its maker pays in full at  its maturity date. Amount due at  maturity  is the  face value of the  note plus interest  for the length of time  specified on the note. dishonored  note is a note that is not paid in  full at maturity. A dishonored note receivable is 
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 4/7/11 Recording Maturity Value To illustrate, assume that Wolder Co. lends Higley Inc.  $10,000 on June 1, accepting a five-month, 9% interest  note. In this situation, interest is $375 . The amount due,  the maturity value, is $10,375 ($10,000 + $375). To obtain  payment, Wolder (the payee) must present the note either 
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accounting 8 - Chapter8 StudyObjective5 BriefExercise7...

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