Explanation Note Receivable: Note receivable refers to a written promise by the debtor for the amounts to be received within a stipulated period of 60-90 days or longer time. This written promise is issued by a debtor or, a borrower to the lender or, creditor. Notes receivable is an asset of a business. a. Prepare journal entry in the books of Corporation N to record the promissory note received against money lendon January 1. Date Account Title and Explanation Debit ($) Credit ($) January 1 Notes receivable 20,000 Cash 20,000 ( To record the acceptance of the note receivable) Table (1) Note Receivable is an asset account, and acceptance of note has increased the value of the asset, so debit it. Cash is an asset account, and it has decreased the value of the asset, so credit it. b. Prepare journal entry in the books of Corporation N to collection of interest on maturity date. Date Account Title and Explanation Debit ($) Credit ($) June 30 Cash 700 Interest Revenue 700 ( To record accrued interest revenue) Table (2) Working Notes: Calculate the amount of interest revenue earned and received on note, at maturity date...

6th Edition

ISBN: 9781265554927

Author: PHILLIPS

Publisher: MCG

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangi…

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Chapter 8, Problem 11ME

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To prepare: The journal entries to record the transactions of Corporation N.

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Chapter 8, Problem 10ME

Chapter 8, Problem 12ME

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Chapter 8 Solutions

FUNDAMENTALS OF FINANCIAL ACCOUNTING LL

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