Chapter 16 – Notes Payable and Notes Receivable
Chapter 16
Notes Payable and Notes Receivable
1. The interest on a $5,000 face value, 3-month note bearing interest at 9 percent a year would
be $1,350.
2. A 2-month note dated January 1, 2010, will mature on the same date as a 60-day note dated
January 1, 2010.
3. Upon payment of the amount due on a $4,000 face value, 60-day, 6 percent note, the
accountant will record an entry that includes a debit to Notes Payable for $4,000.
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33. Which of the following statements is correct?
34. How much interest will accrue on a $20,000 face value, 60-day note that bears interest at
9 percent a year?
