INTACC Midterm Exam | 100% Correct Answers | Verified | Latest 2024 Version

On October 1 of the current year, an entity received a one year note receivable bearing interest at the market rate. The face amount of the note receivable and the entire amount of interest are due on September 30 of next year. The interest receivable on December 31 of the current year would consist of an amount representing a. Three months of accrued interest income b. Nine months of accrued interest income c. Twelve months of accrued interest income d. The excess on October 1 of the present value of the note receivable over the face amount. - a. Three months of accrued interest income On July 1 of the current year, an entity obtained a two-year 8% note receivable for services rendered. At that time, the market rate of interest was 10%. The face amount of the note and the entire amount of interest are due on the date of maturity. Interest receivable on December 31 of the current year is a. 5% of the face amount of the note b. 4% of the face amount of the note c. 5% of the present value of the note d. 4% of the present value of the note - b. 4% of the face amount of the note On July 1 of the current year, an entity received a one-year note receivable bearing interest at the market rate. The face amount of the note receivable and the entire amount of interest are due in one year. The interest receivable amount would show a balance on a. July 1 but not December 31 b. December 31 but not July 1 c. July 1 and December 31 d. Neither July 1 nor December 31 - b. December 31 but not July 1On July of the current year, an entity received a one-year note receivable bearing interest at the market rate. The face amount of the note receivable and the entire amount of the interest are due in one year. When the note receivable was recorded on July 1, which of the following was debited? a. Interest receivable b. Unearned discount on note receivable c. Interest receivable and unearned discount on note receivable d. Neither interest receivable nor unearned discount on note receivable - d. Neither interest receivable nor unearned discount on note receivable On July 1 of the current year, an entity received a one-year note receivable bearing interest at the market rate. The face amount of the note receivable and the entire amount of the interest are due on June 30 of next year. On December 31