Solution-Discuss formulate a schedule of note discount

Discuss formulate a schedule of note discount amortization

Reference no: EM132467409

On December 31, 2016, Omega Corp Consultants finished consultation services and accepted in exchange a promissory note with a face value of $800,000, a due date of December 31, 2019, and a stated rate of 5%, with interest receivable at the end of each year. The market rate of interest for a similar note is 10%

The following interest factors are provided:

Interest Rate

Table Factors For Three Periods 5% 10%

Future Value of 1 1.15763 1.33100

Present Value of 1 .86384 .75132

Future Value of Ordinary Annuity of 1 3.15250 3.31000

Present Value of Ordinary Annuity of 1 2.72325 2.48685

Question 1: Formulate a Schedule of Note Discount Amortization for Omega Corp under the effective interest method. (Round to whole dollars.)

Reference no: EM132467409

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Discuss formulate a schedule of note discount amortization

Reference no: EM132467409

Reference no: EM132467409

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