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Notes Receivable and Notes Payable


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LO 1 Describe a promissory note.
LO 2 Compute the maturity date and interest due on a promissory note.
LO 3 Record the receipt of a note receivable.
LO 4 Record the honoring, discounting, and dishonoring of a note and the adjustment for interest.
LO 5 Prepare entries to account for notes payable.
LO 6 Explain the types and payment patterns of notes.
LO 7 Compute the times interest earned ratio and use it to analyze liabilities.








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