Kona, Inc, on April 15, issued a 5-year, $5,000 non-interest-bearing note payable when the market rate...

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Kona, Inc, on April 15, issued a 5-year, $5,000 non-interest-bearing note payable when the market rate of interest was 9%. Round your answers to the nearest dollar, and do NOT enter dollar signs or punctuation. For example, enter $5,500 as 5500. a. What are the proceeds from Kona's Note issue? b. What is the book value of the note a year after its issuance? Kona, Inc, on April 15, issued a 5-year, $5,000 non-interest-bearing note payable when the market rate of interest was 9%. Round your answers to the nearest dollar, and do NOT enter dollar signs or punctuation. For example, enter $5,500 as 5500. a. What are the proceeds from Kona's Note issue? b. What is the book value of the note a year after its issuance?

Answer rating: 100% (QA)

a To calculate the proceeds from Konas note issue we need to consider that the note is noninterestbe... View the full answer