Flint Corporation, a publicly-traded company, agreed to loan money to another company. On July 1, 2023, the company received a five-year promissory note with a face value of $507,000, paying interest at a face rate of 5% on July 1 each year. The note was issued to yield an effective interest rate of 6%. Flint used the effective interest method of amortization for discounts or premiums, and the company's year-end is September 30. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.
Flint Corporation, a publicly-traded company, agreed to loan money to another company. On July 1, 2023, the company received a five-year promissory note with a face value of $507,000, paying interest at a face rate of 5% on July 1 each year. The note was issued to yield an effective interest rate of 6%. Flint used the effective interest method of amortization for discounts or premiums, and the company's year-end is September 30. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Flint Corporation, a publicly-traded company, agreed to loan money to another company. On July 1, 2023, the company received a
five-year promissory note with a face value of $507,000, paying interest at a face rate of 5% on July 1 each year. The note was issued
to yield an effective interest rate of 6%. Flint used the effective interest method of amortization for discounts or premiums, and the
company's year-end is September 30.
Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.
![$
Cash Received
OOOOO
$
LA
LA
$
Schedule of Note Discount Amortization
Effective Interest Method
Interest Income
000001
LA
LA
Discount Amortized
Carrying Amount
000010
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Transcribed Image Text:$
Cash Received
OOOOO
$
LA
LA
$
Schedule of Note Discount Amortization
Effective Interest Method
Interest Income
000001
LA
LA
Discount Amortized
Carrying Amount
000010
[[][]
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