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Chapter 16 - Notes Payable and Notes Receivable
56. The Jiminez Company accepted an interest-bearing note to settle a past-due account
originating from a sale of merchandise. When the note is collected, the interest earned should
be credited to
57. The Interest Income account
16-24
62. Compute the amount of interest owed on a 60-day, 8 percent note for $9,000.
63. Compute the amount of interest owed on a 90-day, 10 percent note for $15,000.
64. Compute the amount of interest owed on a 6-month, 9 percent note for $6,000.
16-32
81. The Martinez Company, had the following transactions involving notes payable during
2010. Record the transactions on page 11 of a general journal. Omit descriptions.
16-35
85. The Crown Company had the following transactions involving notes receivable during
2011. Record the transactions on page 7 of a general journal. Omit descriptions.
16-38
88. Match the accounting terms with the description by entering the proper number.
1. A business document that lists goods accepted for
transportation
Cashier's check.
3
2. A note issued by one party that orders another party to
pay a specified sum on a specified date
Negotiable
instrument.
11
3. A draft on the issuing bank's own funds
Bank draft.
8
4. A written order that requires one party (a person or
business) to pay a stated sum of money to another party
Draft.
4
5. A commercial draft that is payable during a specified
period of time
Sight draft.
6
6. A commercial draft that is payable on presentation
Time draft.
5
7. The amount shown on the face of a note
Banker's year.
12
8. A check written by a bank that orders another bank to
pay the stated amount to a specific party
Bill of lading.
1
9. The fee charged for the use of money
Commercial
draft.
2
10. An amount of money indicated to be paid, exclusive of
interest or discounts
Face value.
10
11. A financial document containing a promise or order to
pay that meets all requirements of the Uniform
Commercial Code in order to be transferable to another
party
Maturity value.
14
12. A 360-day period used to calculate interest on a note
Principal.
7
13. An asset representing a written promise by another
party (the debtor) to pay the note holder (the creditor) a
specified amount at a specified future date
Discounting.
15
14. The total amount (principal plus interest) that must be
paid when a note comes due
Interest
9
15. Deducting the interest from the principal on a note
payable or receivable in advance
Note receivable
13
16. A liability representing a written promise by the maker
of the note (the debtor) to pay another party (the creditor)
a specified amount at a specified future date
Note payable
16
17. An item that can become a liability if certain things
happen
Trade
acceptance
18
18. A form of commercial time draft used in transactions
involving the sale of goods
Contingent
liability
17
