Exam 16: Notes Payable and Notes Receivable

When a company issues a promissory note,the accountant records an entry that includes a credit to Note Payable for the

A 90-day note issued May 10 matures on ___________________.

If the amount of a note is not collected at maturity,the accountant should debit Uncollectible Accounts Expense and credit Notes Receivable.

The amount of cash paid at maturity date on a $9,000 face value,60-day note bearing interest at 8 percent is ______________________.

The total that must be paid when a note becomes due is known as the

If a note is not paid at maturity,it is said to be ___________________.

Compute the maturity value of a 90-day,10 percent note with a face value of $1,000.

The name given to the price charged for the use of money or credit is ___________________.

The interest on a $5,000 face value,3-month note bearing interest at 9 percent a year would be $1,350.

Notes payable due within one year are usually shown in the

The Notes Receivable Discounted account

Upon payment of the amount due on a $4,000 face value,60-day,6 percent note,the accountant will record an entry that includes a debit to Notes Payable for $4,000.

Compute the maturity value of a 5-month,8 percent note with a face value of $8,000.(round answer to 2 decimal places)

Compute the amount of interest owed on a 3-month,7 percent note for $12,000.

Interest Income is classified as a current asset.

Compute the amount of interest owed on a 90-day,10 percent note for $15,000.

Compute the maturity value of a 6-month,9 percent note with a face value of $5,000.

The Gaynor Company had the following transactions involving notes payable during 2013.Record the transactions on page 5 of a general journal.Omit descriptions.

Compute the maturity value of a 9-month,9 percent note with a face value of $9,000.(round answer to 2 decimal places)

The amount of cash received at maturity for a $5,000,90 day,6 percent note receivable is $75.