Notes PayableTiger Woods purchases inventory in exchange for a 6 monthnote payable with a face value of 100,000 and a stated rateof 8 percent on November 1s*. Prepare the journal entries at11/1, year end (12/31), and April 30th. Notes PayableTiger Woods purchases inventory in exchange for a 6 monthnon-interest bearing note with 200,000 due at maturity onJuly 1st. Assume an effective interest rate of 6 percent.Prepare the journal entries at 7/1 and year end (12/31).NC STATE UNIVERSITYPOOLE

6 month note payables are the short term liabilities. It is also known as written promissory note.…

Tiger Woods purchases inventory in exchange for a 6 month note payable with a face value of 100,000 and a stated rate of 8 percent on November 1st. Prepare the journal entries at 11/1, year end (12/31), and April 30th.

Tiger Woods purchases inventory in exchange for a 6 month note payable with a face value of 100,000 and a stated rate of 8 percent on November 1st. Prepare the journal entries at 11/1, year end (12/31), and April 30th.

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

Notes Payable
Tiger Woods purchases inventory in exchange for a 6 month
note payable with a face value of 100,000 and a stated rate
of 8 percent on November 1s*. Prepare the journal entries at
11/1, year end (12/31), and April 30th.

Notes Payable
Tiger Woods purchases inventory in exchange for a 6 month
non-interest bearing note with 200,000 due at maturity on
July 1st. Assume an effective interest rate of 6 percent.
Prepare the journal entries at 7/1 and year end (12/31).
NC STATE UNIVERSITY
POOLE

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