Exam 16: Notes Payable and Notes Receivable

The amount of cash paid at maturity date on a $9,000 face value,60-day note bearing interest at 6 percent is

A 3-month note payable is classified as a(n)____________________ liability on the balance sheet.

A 2-month note dated January 1,2013,will mature on the same date as a 60-day note dated January 1,2013.

The amount of interest that will accumulate on an $8,000 face value,30-day note bearing interest at 12 percent is ___________________.

The face value of a noninterest-bearing note is its maturity value.

Annual Percentage Rate combines interest rates and fees at lending institutions enabling a borrower to compare fees.

A journal entry is recorded at the time a sight draft is issued.

Notes Receivable Discounted represents a(n)____________________ liability.

The entry to record the collection of the amount due on the maturity date of a note includes a debit to Notes Receivable.

A(n)____________________ is a form of commercial time draft that arises out of the sale of goods and has this fact noted on its face.

The Interest Income account

Find the due date of a 3-month note issued on September 12,2013.

Notes Receivable Discounted is usually shown in the Current Liabilities section of the balance sheet.

Find the due date of a 60-day note issued on January 18,2013.

Upon collection of the amount due on a $6,000 face value,90-day note with interest at 10 percent a year,the Note Receivable account is

How much interest will accrue on a $40,000 face value,60-day note that bears interest at 9 percent a year?

The Notes Receivable account usually has a credit balance.

The maturity value of a 120-day note for $12,000 that bears interest at 8 percent a year is

Find the due date of a 30-day note issued on November 10,2013.

The dollar amount shown on an interest-bearing note is called the principal,or ____________________ value.