True or false 1. Amortization of the discount on note Payable increases the balance of the discount on note payable 2. The carrying amount of the note payable is the same all through out the term of an non-interest bearing note. 3. Discount on note payable is amortized by crediting it and debiting interest expense. 4 To record the purchase of a property by issuing a non-interest bearing note will involve a credit to note payable . 5.. When an interest bearing note is issued to acquire an asset, the asset is debited at an amount equal to the downpayment if there is any plus the face amount of the note. 6. The property that is purchased using a non-interest bearing note should be recorded at its cash price if available. If the cash price of the property is not available, the present value of the note must be computed. Please answer it completely. Thanks tutor.
True or false
1. Amortization of the discount on note Payable increases the balance of the discount on note payable
2. The carrying amount of the note payable is the same all through out the term of an non-interest bearing note.
3. Discount on note payable is amortized by crediting it and debiting interest expense.
4 To record the purchase of a property by issuing a non-interest bearing note will involve a credit to note payable .
5.. When an interest bearing note is issued to acquire an asset, the asset is debited at an amount equal to the downpayment if there is any plus the face amount of the note.
6. The property that is purchased using a non-interest bearing note should be recorded at its cash price if available. If the cash price of the property is not available, the present value of the note must be computed.
Please answer it completely.
Thanks tutor.
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