Answered: Kingbird Corporation issued a 4-year.…

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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Kingbird Corporation issued a 4-year. $48000, zero-intrest-bearing note to Garcia Company on January 1, 2025, and recieved cash of $48000. In additiona, kingbird agreed to sell merchandise to Garcia at an amount less than regular selling price over the 4 year perios. The marker rate of intrest for simular notes is 12%

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Notes payable either written or drawn promissory notes. Under this arrangement, a borrower receives a specific amount of money from a lender and agrees to repay it with interest over a specified period of time. The interest rate may be set for the duration of the note or it may change in accordance with the interest rate the lender charges its most valuable clients (known as the prime rate). In contrast to an account payable, which does not require the payment of interest or a promissory note but may impose a penalty if the payment is received beyond the due date.

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