Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 7 - Cash and Receivables - Problems - Page 421: CA7-8b

Answer

Moresan should report the interest-bearing note receivable at December 31, 2012, as a current asset at its face/principal amount.

Work Step by Step

Moresan should report the zero interest-bearing note receivable at December 31, 2012, as a noncurrent asset at its face amount less the unamortized discount on the note at December 31, 2012.
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