1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sdas [7]
3 years ago
11

A note payable was issued in payment for services received. The services had a fair value less than the face amount of the note

payable. The note payable has no stated interest rate. How should the note payable be presented in the statement of financial position?
Business
1 answer:
Leokris [45]3 years ago
3 0

Answer:

The note payable will be presented in the financial statement at the face amount minus a discount calculated at the imputed interest rate.

Explanation:

The imputed rate is the rate at which the present value of the face amount of the note will be equal to the amount at which it is originally recorded.  

Notes issued or received in exchange for goods or services that do not bear interest at a fair rate are reported at an amount equal to the fair value of the note, the fair value of the goods or services, or the present value of the note using a fair interest rate, whichever is more readily determinable.  

The difference between the recorded amount and the face value is considered a discount and the applicable interest rate regardless of which method is used to value the note.

Because of this, the note is reported at its face amount minus a discount calculated at the imputed interest rate.

You might be interested in
Rather than acquire an existing textile manufacturer in Jakarta, FauxFabric Inc. chose to establish new operations in Indonesia.
Arisa [49]

Answer: (A) Greenfield investment

Explanation:

 The greenfield investment is one of the type of FDI ( Foreign direct investment) that helps in constructing the various types of new production facilities in an organization.

The main objective of the greenfield investment process is to making the manage the investor control process and also form different types of opportunities for managing the partnerships in the market.

According to the given question, the Greenfield investment process is helps in establishing the various types of new operation in Indonesia and it is the form of foreign direct investment.

 Therefore, Option (A) is correct answer.

7 0
2 years ago
IBM signs an agreement to lend one of its customers $200,000 to be repaid in one year at 5% interest. IBM would record this loan
Olenka [21]

Answer:

B. Notes Receivable.

Explanation:

Since the company is signed an agreement for lending out of its customers for $200,000 that could be repaid in one year at 5% interest so it is not revenue not note payable and also not account receivable

Therefore it is a note receivable

Hence, the option b is correct

and, the same is to be considered and relevant

4 0
2 years ago
Yet a fever, when allowed to run its course, is actually ____________ .
Julli [10]
The answer is beneficial. A small research displays that allowing a fever run its course may decrease the span and relentlessness of such sicknesses like colds and flu. As for the worry among parents that fevers can have damaging effects, these occurrences are very occasional. The brain has an interior controlling mechanism that stops fevers caused by contaminants from receiving higher than 105 or 106 degrees. 
8 0
3 years ago
Tile & Grout (T&G) contracts to resurface the insides of the pools at WaterWorld Park. T&G knows that without the re
Pavel [41]

Answer:

The answer is Letter C

Explanation:

Water World can recover the loss of profit from the delayed opening.

4 0
2 years ago
This type of file is created when you save your word processing document.
rosijanka [135]
I believe the answer is data
5 0
3 years ago
Read 2 more answers
Other questions:
  • Nora surveys people of different age groups and social backgrounds to find the potential target audience for her company’s produ
    10·2 answers
  • In addition to teaching some amount of tolerance, the crusades also encouraged ______.
    12·1 answer
  • The Discount on Bonds Payable account is: A. A liability. B. A contra liability. C. A contra expense. D. An expense. E. A contra
    12·1 answer
  • When Padgett Properties LLC was formed, Nova contributed land (value of $200,000 and basis of $50,000) and $100,000 cash, and Os
    12·1 answer
  • Makoto Corp. prepared the following reconciliation of income per books with income per tax return for the year ended December 31
    9·1 answer
  • Below are the transactions and adjustments that occurred during the first year of operations at Kissick Co
    10·1 answer
  • Consultant Co. is in the business of public relation consulting. The firm has two units: Government (working with various levels
    6·1 answer
  • Use this information for ABC Corporation to answer the question that follow. ABC Corporation has three service departments with
    10·1 answer
  • How To Get To London Southend Airport Taxi?
    13·1 answer
  • __________ values and norms are exhibited by employees based on their observations of what actually goes on in the organization.
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!