Question 1

Describe (a) the function of a promissory note and (b) explain its various parts and features.

Accepted Answer

a)A promissory note is a written promise

Question 2

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement that the account in which the account balance is reported, and in Column 4 the account's nature (temporary/permanent).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 3

Jeff Company issues a promissory note to David Company to get extended time on an account payable. Jeff Company records this transaction as follows:

Accepted Answer

A)  debit Accounts Receivable; credit Notes Receivable. 
B)  debit Notes Receivable; credit Accounts Receivable. 
C)  debit Notes Payable; credit Accounts Payable. 
D)  debit Accounts Payable; credit Notes Payable. 
A)  debit Accounts Receivable; credit Notes Receivable. 
B)  debit Notes Receivable; credit Accounts Receivable. 
C)  debit Notes Payable; credit Accounts Payable. 
D)  debit Accounts Payable; credit Notes Payable.

Question 4

Mountain Site discounts a customer's 10%, $2,000, 90-day note dated April 1, on May 15. The discount period is 45 days, and the bank discount rate is 16%. The maturity value of the note is $2,050. The bank discount is $41. The proceeds of the note are:

Accepted Answer

A)  $2,050. 
B)  $2,009. 
C)  $1,959. 
D)  $2,000. 
A)  $2,050. 
B)  $2,009. 
C)  $1,959. 
D)  $2,000.

Question 5

The process of endorsing a note and transferring it to a financial institution is known as:

Accepted Answer

A)  dishonoring a note receivable. 
B)  discounting a note receivable. 
C)  cosigning a note receivable. 
D)  collecting a note receivable. 
A)  dishonoring a note receivable. 
B)  discounting a note receivable. 
C)  cosigning a note receivable. 
D)  collecting a note receivable.

Question 6

On April 4, Noreen Cox negotiated a $14,000 bank loan for 240 days at an interest rate of 6%.
Required (show your calculations):
a) Determine the maturity date of the note.
b) Calculate the amount of interest charged by the bank.

Accepted Answer

a) November 30 (April 26 days,

Question 7

A $10,000, 5% note is dated July 6 and is due in 120 days. Using a 360-day year, the interest payment would be: (Do not round any intermediate calculations. Round your final answer to the nearest dollar.)

Accepted Answer

A)  $250. 
B)  $500. 
C)  $333. 
D)  $167. 
A)  $250. 
B)  $500. 
C)  $333. 
D)  $167.

Question 8

The maturity date during a leap year for a 95-day note dated February 2 is:

Accepted Answer

A)  May 8. 
B)  May 6. 
C)  May 7. 
D)  May 5. 
A)  May 8. 
B)  May 6. 
C)  May 7. 
D)  May 5.

Question 9

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement that the account in which the account balance is reported, and in Column 4 the account's nature (temporary/permanent).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 10

The person or company promising to pay the note plus interest when it comes due is known as the

Accepted Answer

A)  drawee. 
B)  creditor. 
C)  maker. 
D)  payee. 
A)  drawee. 
B)  creditor. 
C)  maker. 
D)  payee.

Question 11

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement that the account in which the account balance is reported, and in Column 4 the account's nature (temporary/permanent).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 12

Principal refers to:

Accepted Answer

A)  the amount of interest to be paid. 
B)  the original amount - the discount. 
C)  the original amount loaned or borrowed. 
D)  the maturity value. 
A)  the amount of interest to be paid. 
B)  the original amount - the discount. 
C)  the original amount loaned or borrowed. 
D)  the maturity value.

Describe (a) the function of a promissory note and (b) explain its various parts and features.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement that the account in which the account balance is reported, and in Column 4 the account's nature (temporary/permanent). -

Jeff Company issues a promissory note to David Company to get extended time on an account payable. Jeff Company records this transaction as follows:

Mountain Site discounts a customer's 10%, $2,000, 90-day note dated April 1, on May 15. The discount period is 45 days, and the bank discount rate is 16%. The maturity value of the note is $2,050. The bank discount is $41. The proceeds of the note are:

The process of endorsing a note and transferring it to a financial institution is known as:

On April 4, Noreen Cox negotiated a $14,000 bank loan for 240 days at an interest rate of 6%. Required (show your calculations): a) Determine the maturity date of the note. b) Calculate the amount of interest charged by the bank.

A $10,000, 5% note is dated July 6 and is due in 120 days. Using a 360-day year, the interest payment would be: (Do not round any intermediate calculations. Round your final answer to the nearest dollar.)

The maturity date during a leap year for a 95-day note dated February 2 is:

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement that the account in which the account balance is reported, and in Column 4 the account's nature (temporary/permanent). -

The person or company promising to pay the note plus interest when it comes due is known as the

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement that the account in which the account balance is reported, and in Column 4 the account's nature (temporary/permanent). -

Principal refers to:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying, Recording, and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Accounting for Merchandise Inventory

Accounting for Property, Plant, Equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, Dividends, Treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters

Exam 14: Notes Receivable and Notes Payable

Describe (a) the function of a promissory note and (b) explain its various parts and features.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement that the account in which the account balance is reported, and in Column 4 the account's nature (temporary/permanent). -

Jeff Company issues a promissory note to David Company to get extended time on an account payable. Jeff Company records this transaction as follows:

Mountain Site discounts a customer's 10%, $2,000, 90-day note dated April 1, on May 15. The discount period is 45 days, and the bank discount rate is 16%. The maturity value of the note is $2,050. The bank discount is $41. The proceeds of the note are:

The process of endorsing a note and transferring it to a financial institution is known as:

On April 4, Noreen Cox negotiated a $14,000 bank loan for 240 days at an interest rate of 6%. Required (show your calculations): a) Determine the maturity date of the note. b) Calculate the amount of interest charged by the bank.

A $10,000, 5% note is dated July 6 and is due in 120 days. Using a 360-day year, the interest payment would be: (Do not round any intermediate calculations. Round your final answer to the nearest dollar.)

The maturity date during a leap year for a 95-day note dated February 2 is:

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement that the account in which the account balance is reported, and in Column 4 the account's nature (temporary/permanent). -

The person or company promising to pay the note plus interest when it comes due is known as the

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement that the account in which the account balance is reported, and in Column 4 the account's nature (temporary/permanent). -

Principal refers to:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying, Recording, and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Accounting for Merchandise Inventory

Accounting for Property, Plant, Equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, Dividends, Treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters