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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.

FINANCIAL ACCOUNTING
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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15, please read the question carefully and follow the instructions. thanks

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: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
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.
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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