March 30 Loaned an officer of the company $30,000 and received a note requiring principal and interest at 8% to be paid on March 30, 2025. May 30 Discounted the $30,000 note at a local bank. The bank’s discount rate is 9%. The note was discounted without recourse and the sale criteria are met. Record the accrued interest revenue on the discounted note.
March 30 Loaned an officer of the company $30,000 and received a note requiring principal and interest at 8% to be paid on March 30, 2025. May 30 Discounted the $30,000 note at a local bank. The bank’s discount rate is 9%. The note was discounted without recourse and the sale criteria are met. Record the accrued interest revenue on the discounted note.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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March 30 Loaned an officer of the company $30,000 and received a note requiring principal and interest at 8% to be paid on March 30, 2025.
May 30 Discounted the $30,000 note at a local bank. The bank’s discount rate is 9%. The note was discounted without recourse and the sale criteria are met.
Record the accrued interest revenue on the discounted note.
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