Aloha Co. received the following note: Face amount P 1,000,000 Effective interest 15% Stated interest 0% The note is due in lump sum in five years' time. The entry to record the interest income for the second year includes a debit to Discount on Notes Receivable amounting to__________. Do not round off your present value factors but round off your final answer to two decimal places.

Aloha Co. received the following note: Face amount P 1,000,000 Effective interest 15% Stated interest 0% The note is due in lump sum in five years' time. The entry to record the interest income for the second year includes a debit to Discount on Notes Receivable amounting to__________. Do not round off your present value factors but round off your final answer to two decimal places.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.12E

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