Ee 13. Analyzing Interest-Bearing and Noninterest-Bearing NotesConsider 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 tomon note payableNote: Round your answers to the nearest whole dollar.Cash received upon note issuanceCash paid at maturity dateTotal interest paid (cash)$100,000 Note payable12% Interest due at maturity12% market rateBorrower's FYE: Dec. 31100,000112,000Interest expense in fiscal Year 1treerest expense in fiscal Year 2Amount of liabilities reported on fiscal Year 1 balance sheetNote payable (netInterest payable*FYE: Fiscal year-endCheck12,0004,0001,000100,0004.000$100,000 Note payable10% interest due at maturity10% market rateBorrower's FYE: Nov. 30100.000110.00010.0002.5007,500$100,0002.500$100,000 Note payableNoninterest-bearing12% market rateBorrower's FYE: Dec. 31$83,296100.00010,7143.5717,14396,4290✔

A note payable is a form of a promissory note. On this note, one party has promised to pay the other…

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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