Exam 16: Notes Payable and Notes Receivable

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.

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

The Notes Receivable account usually has a credit balance.

Compute the maturity value of a 4-month, 7 percent note with a face value of $4,000. (round answer to 2 decimal places)

A ____________________ draft is a commercial draft that is payable during a specified period of time.

Match the accounting terms with the description by entering the proper number.

The entry to record the issuance of a promissory note will include a(n) ____________________ to Notes Payable.

The amount of cash paid at maturity date on a $9,000 face value, 60-day note bearing interest at 8% is _____________________. 9000 x 60/360 x .08 = 120; 9000 + 120 = 9,120.