Final 2 - a. General Journal Date Account Dr Cr November 1,...

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On November 1, 2011, a $216,000, 9-month, noninterest-bearing note is issued at a 10%  discount rate. Required : a. Prepare the appropriate journal entry to record the  issuance of the note. b. Determine the effective interest rate. Problem #2:
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Unformatted text preview: a. General Journal Date Account Dr Cr November 1, 2011 Cash 199,800 Discount on notes payable 16,200 ($216,000 x 10% x 9/12) Note payable 216,000 b. Effective interest rate is ($16,200/ $199,800) x 12/9 = 10.81%...
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This note was uploaded on 02/29/2012 for the course INTERMEDIA 301 taught by Professor ?? during the Spring '12 term at Post.

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