Illustration 7 13 notesreceivable

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Unformatted text preview: note? (since SR < MR we issue note at DISCOUNT) i = 12% $10,000 Principal $1,000 0 Chapter 7-45 1,000 1 2 n=3 1,000 Interest 3 4 LO 6 Explain accounting issues related to recognition of notes receivable. Long-Term Note Issued at a DISCOUNT Long-Term Note Issued at a DISCOUNT Long-Term DISCOUNT Long-Term DISCOUNT PV of Interest $1,000 x 2.40183 = $2,402 Interest Received Chapter 7-46 Factor Present Value LO 6 Explain accounting issues related to recognition of notes receivable. Long-Term Note Issued at a DISCOUNT Long-Term Note Issued at a DISCOUNT Long-Term DISCOUNT Long-Term DISCOUNT PV of Principal $10,000 x .71178 = $7,118 Principal Chapter 7-47 Factor Present Value LO 6 Explain accounting issues related to recognition of notes receivable. Long-Term Note Issued at a DISCOUNT Long-Term Note Issued at a DISCOUNT Long-Term DISCOUNT Long-Term DISCOUNT Illustration: How does Morgan record the receipt of the note? Illustration 7-13 Notes Receivable Discount on Notes Receivable Cash Chapter 7-48 10,000 480 9,520 LO 6 Explain accounting issues related to recognition of notes receiv...
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