Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 7 - Cash and Receivables - Review and Practice - Brief Exercises - Page 363: BE7-8

Answer

Notes Receivable............................................................ 20,000 …………………………. Discount on Notes Receivable........................ 4,056 …………………………..Cash.................................................................... 1652.9* Discount on Notes Receivable....................................... 1652.9 ……………………………… Interest Revenue.......................................... 1652.9 Discount on Notes Receivable....................................... 1, 818.19** …………………………………Interest Revenue....................................... 1, 818.19 Cash...................................................................................... 20,000 ………………………………… Notes Receivable......................................... 20,000

Work Step by Step

16,529 X 10% = 1,652.9* (16,529 + 1,652.9) X 10% = 1, 818.19**
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.

GradeSaver will pay $15 for your literature essays
GradeSaver will pay $25 for your college application essays
GradeSaver will pay $50 for your graduate school essays – Law, Business, or Medical
GradeSaver will pay $10 for your Community Note contributions
GradeSaver will pay $500 for your Textbook Answer contributions