RSM219H1 Lecture Notes - Lecture 10: Coastline Community College, Promissory Note, Financial Statement

• School: UTSG
• Department: Rotman Commerce
• Course: RSM219H1
• Professor: Alexander Edwards

Document Summary

Payable account is amortized over the life of the bond: calculated interest on bonds face value * annual interest rate * term in a factor of one year (x years/1 yr, x months/12 mo or x days/360days) Chapter 10: reporting and analyzing liabilities (cont): issuance - gaap presentation on financial statements, issuance of bonds at discount recording journal entry. )(face/principal due at maturity) xx: issuance of bonds at premium recording journal entry. Computational calculation of interest to be paid on long-term note payable. The interest that would be charged on a ,000 note payable, at the rate of 6%, on a. 90-day note (assuming a 360 day year) would be: Interest charged = face value * interest rate * term (in a fraction of a year) Interest charged = ,000 * 6% * 90/360. Computational calculation of bond premium and appropriate journal entry.