Note payable is a form of promissory note made between two parties. A borrower receives a certain sum of money from a lender on the promise to pay back with interest in a specific period. To prepare: To prepare the journal entry on the fair value option for the note payable.

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Chapter 14, Problem 20Q

To determine

Introduction: Note payable is a form of promissory note made between two parties. A borrower receives a certain sum of money from a lender on the promise to pay back with interest in a specific period.

To prepare: To prepare the journal entry on the fair value option for the note payable.

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