You Father Company received the following N/R on Jan 1, 2021: 1. $3000 N/R (10%) for...

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You Father Company received the following N/R on Jan 1, 2021: 1. $3000 N/R (10%) for 4 years at 10% market interest rate (at face value). 4. 2. $4000 N/R (89%) for 4 years at 10% market interest rate (interest bearing N/R). 3. $5000 N/R (0%) for 4 years at 10% market interest rate (zero interest bearing N/R). a loan to BBB Co. and receives in exchange a two-year, $4,000 note bearing interest at 12 percent annually. The market rate of interest for a note of similar risk is 10 percent. Record the above and prepare schedule of discount amortization. You Father Company received the following N/R on Jan 1, 2021: 1. $3000 N/R (10%) for 4 years at 10% market interest rate (at face value). 4. 2. $4000 N/R (89%) for 4 years at 10% market interest rate (interest bearing N/R). 3. $5000 N/R (0%) for 4 years at 10% market interest rate (zero interest bearing N/R). a loan to BBB Co. and receives in exchange a two-year, $4,000 note bearing interest at 12 percent annually. The market rate of interest for a note of similar risk is 10 percent. Record the above and prepare schedule of discount amortization.

Answer rating: 100% (QA)

SOLUTION To record the notes and loan Debit Notes Receivable 10 3000 Credit Notes Payable 3000 Debit Notes Receivable 8 4000 Credit Interest Revenue 3... View the full answer