Reference no: EM132462439

Question 1. The market interest rate for a note or bond is also known as the

Select one:

a. Face Rate

b. Effective Rate

c. Coupon Rate

d. Stated Rate

Question 2.The ABC Company rendered services on 1/1/15 and accepted a $10,000, 6%, 5-year note receivable with interest to be paid annually on December 31 through 12/31/19. The principal will be paid in full on 12/31/19. ABC's imputed interest rate is 10% and the effective amortization method is used.

1. The initial journal entry to record the receipt of the note will include an entry to which account for what approximate amount?

Select one:

a. Debit to Discount on Notes Receivable for $2,274

b. Debit to Discount on Notes Receivable for $1,517

c. Credit to Discount on Notes Receivable for $2,274

d. Credit to Service Revenue for $8,483

e. Credit to Service Revenue for $10,000

Question 3. The GRF Company rendered services on 1/1/16 and accepted a $10,000, 6%, 5-year note receivable with interest to be paid annually on December 31 through 12/31/20. The principal will be paid in full on 12/31/20. GRF's imputed interest rate is 12% and the effective amortization method is used.

Total approximate Interest Revenue over the life of this note will be:

Select one:

a. $2,763

b. $2,163

c. $8,163

d. $5,163

e. $5,674