Current Attempt in Progress Crane Company signed a three-month, zero-interest-bearing note on November 1, 2020 for the purchase of $499700 of inventory. The face value of the note was $513500. Crane used a "Discount of Note Payable" account to initially record the note. Assuming that the discount will be amortized equally over the 3-month period and that there was no adjusting entry made for November, the adjusting entry made at December 31, 2020 will include a O debit to Interest Expense for $9200. O debit to Discount on Note Payable for $4600 O credit to Discount on Note Payable for $4600. O credit to Interest Expense for $9200. Save for Lates Attempts: 0 of 1 used Submit Answer

Current Attempt in Progress Crane Company signed a three-month, zero-interest-bearing note on November 1, 2020 for the purchase of $499700 of inventory. The face value of the note was $513500. Crane used a "Discount of Note Payable" account to initially record the note. Assuming that the discount will be amortized equally over the 3-month period and that there was no adjusting entry made for November, the adjusting entry made at December 31, 2020 will include a O debit to Interest Expense for $9200. O debit to Discount on Note Payable for $4600 O credit to Discount on Note Payable for $4600. O credit to Interest Expense for $9200. Save for Lates Attempts: 0 of 1 used Submit Answer

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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President Company purchased merchandise from Captain Corporation on September 30, 2024. Payment was made in the form of a noninterest-bearing note requiring President to make six annual payments of $4,600 on each September 30, beginning on September 30, 2027. Calculate the amount at which President should record the note payable and corresponding purchase on September 30, 2024, assuming that an interest rate of 10% properly reflects the time value of money in this situation. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. Round your intermediate calculations to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Please Correct and incorrect option explain
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