Aloha Co. received the following note: Face amount P 1,000,000 Effective interest 15% Stated interest 0% The note is due in lump sum in five years' time. The entry to record the interest income for the second year includes a debit to Discount on Notes Receivable amounting to__________. Do not round off your present value factors but round off your final answer to two decimal places.
Aloha Co. received the following note: Face amount P 1,000,000 Effective interest 15% Stated interest 0% The note is due in lump sum in five years' time. The entry to record the interest income for the second year includes a debit to Discount on Notes Receivable amounting to__________. Do not round off your present value factors but round off your final answer to two decimal places.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.12E
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Aloha Co. received the following note:
Face amount P 1,000,000
Effective interest 15%
Stated interest 0%
The note is due in lump sum in five years' time. The entry to record the interest income for the second year includes a debit to Discount on Notes Receivable amounting to__________. Do not round off your present value factors but round off your final answer to two decimal places.
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