Whispering Winds Corporation, a publicly-traded company, agreed to loan money to another company. On July 1, 2023, the company received a five-year promissory note with a face value of $520,000, paying interest at a face rate of 5% on July 1 each year. The note was issued to yield an effective interest rate of 6%. Whispering Winds used the effective interest method of amortization for discounts or premiums, and the company's year-end is September 30.
Whispering Winds Corporation, a publicly-traded company, agreed to loan money to another company. On July 1, 2023, the company received a five-year promissory note with a face value of $520,000, paying interest at a face rate of 5% on July 1 each year. The note was issued to yield an effective interest rate of 6%. Whispering Winds used the effective interest method of amortization for discounts or premiums, and the company's year-end is September 30.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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15, please read the question carefully and follow the instructions. thanks
Transcribed Image Text:Prepare a schedule of note premium / discount amortization schedule. (Round answers to O decimal places, e.g. 58,971.)
Date
(d-
m-
yr)
1-
Jul-
23
1-
Jul-
24
1-
Jul-
25
1-
Jul-
26
1-
Jul-
27
1-
Jul-
28
Cash Received
LA
Schedule of Note Discount Amortization
Effective Interest Method
Interest Income
UI
NI
$
LA
Discount Amortized
Carrying Amoun
Transcribed Image Text:Whispering Winds Corporation, a publicly-traded company, agreed to loan money to another company. On July 1, 2023, the company
received a five-year promissory note with a face value of $520,000, paying interest at a face rate of 5% on July 1 each year. The note
was issued to yield an effective interest rate of 6%. Whispering Winds used the effective interest method of amortization for
discounts or premiums, and the company's year-end is September 30.
Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.
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