Chapter 14, Problem 14.3P

a.

To determine

Concept Introduction:

Long-term Note Payable: Companies report long-term notes payable as a non-current liability due and payable within a period greater than one year from the balance sheet date. The difference between the face value and the present value of the note payable is called the discount and represents some of the interest expense to be incurred over the life of the note.

The present value of the note payable and the discount on the note payable.

b.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal entry for recording issuance of the notes payable.

c.

To determine

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over the time period.

To prepare: The amortization table for the note payable.

d.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording the first payment as on December 31, 2022.

e.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording the payment of the note at maturity.