o**o
发帖数: 408 | 1 On August 1, 1991, Vann Corp.’s $500,000, one year, noninterest-bearing
note due July 31, 1992, was discounted at Homestead Bank at 10.8%. Vann
uses the straight-line method of amortizing bond discount. What amount
should Vann report for notes payable in its December 31, 1991, balance sheet.
A) $500,000
B) $477,000
C) $468,500
D) $446,000
Correct ans. C
My question is, Vann discounted the note at homestead on August 1, why
should Vann report this note in its balance sheet at year end since they
sold it??
Thanks a lot | b********n
发帖数: 1651 | 2 Vann corp将note卖出去，记录
DR: Cash 446000
DR: Discount on N/P 54000
CR: N/P 500000
每个月amortize,amortize增加note的carrying value (即N/P balance)
amortize each month = 54000/12 = 4500
开始N/P balance = 446000
after amortize for 5 months, N/P balance = 446000+4500 X 5 = 468500.
后面amortization的journal entry我觉得是：
DR: Interest expense 4500
CR: Discount on N/P 4500
这个每个月Discount on N/P 就是对N/P balance的调整
sheet.
【在 o**o 的大作中提到】
: On August 1, 1991, Vann Corp.’s $500,000, one year, noninterest-bearing
: note due July 31, 1992, was discounted at Homestead Bank at 10.8%. Vann
: uses the straight-line method of amortizing bond discount. What amount
: should Vann report for notes payable in its December 31, 1991, balance sheet.
: A) $500,000
: B) $477,000
: C) $468,500
: D) $446,000
: Correct ans. C
: My question is, Vann discounted the note at homestead on August 1, why
| s*******t
发帖数: 3895 | 3 要将这个note payable想成vann折价发行债券给银行，这样就好理解了。
下面这个分录应该是对的。
【在 b********n 的大作中提到】
: Vann corp将note卖出去，记录
: DR: Cash 446000
: DR: Discount on N/P 54000
: CR: N/P 500000
: 每个月amortize,amortize增加note的carrying value (即N/P balance)
: amortize each month = 54000/12 = 4500
: 开始N/P balance = 446000
: after amortize for 5 months, N/P balance = 446000+4500 X 5 = 468500.
: 后面amortization的journal entry我觉得是：
: DR: Interest expense 4500
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