Analyzing Interest-Bearing and Noninterest-Bearing Notes Consider the following three separate scenarios for a one-year, $100.000 note payable issued on September 1 of Year 1. Complete the table, using the straight-line methom on note payable. Note: Round your answers to the nearest whole dollar. Cash received upon note issuance Cash paid at maturity date Total interest paid (cash) Interest expense in fiscal Year 1 treerest expense in fiscal Year 2 Amount of liabilities reported on fiscal Year 1 balance sheet Note payable net interest payable *PYE: Fiscal year-end Check $100,000 Note payable 12% Interest due at maturity 12% market rate Borrower's FYE: Dec. 31 100.000 112,000 12.000 4,000 8.000 100,000 4,000 $100,000 Note payable 10% interest due at maturity 10% market rate Borrower's FYE: Nov. 30 100.000 110,000 10.000 2.500 7,500 100.000 2.500 $100,000 Note payable Noninterest-bearing 12% market rate Borrower's FYE: Dec. 31 83,296 100,000 10,714 3.571 7,143 $ 96,429 x
Analyzing Interest-Bearing and Noninterest-Bearing Notes Consider the following three separate scenarios for a one-year, $100.000 note payable issued on September 1 of Year 1. Complete the table, using the straight-line methom on note payable. Note: Round your answers to the nearest whole dollar. Cash received upon note issuance Cash paid at maturity date Total interest paid (cash) Interest expense in fiscal Year 1 treerest expense in fiscal Year 2 Amount of liabilities reported on fiscal Year 1 balance sheet Note payable net interest payable *PYE: Fiscal year-end Check $100,000 Note payable 12% Interest due at maturity 12% market rate Borrower's FYE: Dec. 31 100.000 112,000 12.000 4,000 8.000 100,000 4,000 $100,000 Note payable 10% interest due at maturity 10% market rate Borrower's FYE: Nov. 30 100.000 110,000 10.000 2.500 7,500 100.000 2.500 $100,000 Note payable Noninterest-bearing 12% market rate Borrower's FYE: Dec. 31 83,296 100,000 10,714 3.571 7,143 $ 96,429 x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Ee 13.
![Analyzing Interest-Bearing and Noninterest-Bearing Notes
Consider the following three separate scenarios for a one-year, $100.000 note payable issued on September 1 of Year 1. Complete the table, using the straight-line method tom
on note payable
Note: Round your answers to the nearest whole dollar.
Cash received upon note issuance
Cash paid at maturity date
Total interest paid (cash)
$100,000 Note payable
12% Interest due at maturity
12% market rate
Borrower's FYE: Dec. 31
100,000
112,000
Interest expense in fiscal Year 1
treerest expense in fiscal Year 2
Amount of liabilities reported on fiscal Year 1 balance sheet
Note payable (net
Interest payable
*FYE: Fiscal year-end
Check
12,000
4,000
1,000
100,000
4.000
$100,000 Note payable
10% interest due at maturity
10% market rate
Borrower's FYE: Nov. 30
100.000
110.000
10.000
2.500
7,500
$
100,000
2.500
$100,000 Note payable
Noninterest-bearing
12% market rate
Borrower's FYE: Dec. 31
$
83,296
100.000
10,714
3.571
7,143
96,429
0✔](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7f160f1b-d125-4cf2-9b01-27d1eef1b8b8%2Fa2ba1ee1-2938-41b4-b036-4a4c1a8194a6%2Fix1czoy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Analyzing Interest-Bearing and Noninterest-Bearing Notes
Consider the following three separate scenarios for a one-year, $100.000 note payable issued on September 1 of Year 1. Complete the table, using the straight-line method tom
on note payable
Note: Round your answers to the nearest whole dollar.
Cash received upon note issuance
Cash paid at maturity date
Total interest paid (cash)
$100,000 Note payable
12% Interest due at maturity
12% market rate
Borrower's FYE: Dec. 31
100,000
112,000
Interest expense in fiscal Year 1
treerest expense in fiscal Year 2
Amount of liabilities reported on fiscal Year 1 balance sheet
Note payable (net
Interest payable
*FYE: Fiscal year-end
Check
12,000
4,000
1,000
100,000
4.000
$100,000 Note payable
10% interest due at maturity
10% market rate
Borrower's FYE: Nov. 30
100.000
110.000
10.000
2.500
7,500
$
100,000
2.500
$100,000 Note payable
Noninterest-bearing
12% market rate
Borrower's FYE: Dec. 31
$
83,296
100.000
10,714
3.571
7,143
96,429
0✔
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