2. On May 1, Edwards signs a $125,000 non-interest-bearing note payable due in one year to...

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2. On May 1, Edwards signs a $125,000 non-interest-bearing note payable due in one year to Chicago National Bank. The market rate on the note is 5%. 11 gnitoqs> [sionsnit a. Prepare the journal entries at the following dates: May 1: December 31: At maturity: Account DR lamm CR sri slivo19 mamos b. What amount(s) would be reported in the current liabilities section of the balance sheet at December 31 for this note? 2. On May 1, Edwards signs a $125,000 non-interest-bearing note payable due in one year to Chicago National Bank. The market rate on the note is 5%. 11 gnitoqs> [sionsnit a. Prepare the journal entries at the following dates: May 1: December 31: At maturity: Account DR lamm CR sri slivo19 mamos b. What amount(s) would be reported in the current liabilities section of the balance sheet at December 31 for this note?

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This question relates to accounting for noninterestbearing notes payable When a note payable does not bear interest the proceeds received are less tha... View the full answer