On January 1, 2024, Cullumber Company issued for cash a $59000 -year note bearing market rate of interest for a note of similar risk is 12%. What should be the balance of the Discount on Notes Payable account on the books of Cullumber at December 31, 2026 after adjusting entries are made, assuming that the effective-interest method is used? O $16798 O $51501 O $19942 O $28341

On January 1, 2024, Cullumber Company issued for cash a $59000 -year note bearing market rate of interest for a note of similar risk is 12%. What should be the balance of the Discount on Notes Payable account on the books of Cullumber at December 31, 2026 after adjusting entries are made, assuming that the effective-interest method is used? O $16798 O $51501 O $19942 O $28341

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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Question

On January 1, 2024, Cullumber Company issued for cash a $590000, 5-year note bearing annual interest at 10% to Taylor, Inc. The
market rate of interest for a note of similar risk is 12 %, What should be the balance of the Discount on Notes Payable account on the
books of Cullumber at December 31, 2026 after adjusting entries are made, assuming that the effective-interest method is used?
$16798
O $51501
O $19942
O $28341

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