Chapter 9, Problem 9.9MCP

1.

To determine

Note payable: It is a formal agreement of loan between borrower and lender. Under this agreement, all the conditions, interest rate, date of maturity is written and duly signed by both parties involved.

(a) The face value of the note assuming the interest is paid when the loan is due. (b) The face value of the note assuming the interest is deducted in advance.

2.

To determine

Note payable: It is a formal agreement of loan between borrower and lender. Under this agreement, all the conditions, interest rate, date of maturity is written and duly signed by both parties involved.

(a) The effective interest when interest is paid on due date. (b) The effective interest when interest is deducted in advance.

3.

To determine

Note payable: It is a formal agreement of loan between borrower and lender. Under this agreement, all the conditions, interest rate, date of maturity is written and duly signed by both parties involved.

(a) The journal entry when interest is paid on the due date. (b) The journal entry when interest is paid in advance.

4

To determine

Note payable: It is a formal agreement of loan between borrower and lender. Under this agreement, all the conditions, interest rate, date of maturity is written and duly signed by both parties involved.

(a) The balance sheet presentation for July 1, 2016, immediately after note issued when interest is paid when the loan is due. (b) The balance sheet presentation for July 1, 2016, immediately after note issued when interest is deducted in advance.