Question

The time between the date a note is issued and the due date of the note 1. Face amount The dollar amount stated on a promissory note 2. Term The stated rate charged for using the money of another party 3. Interest The amount charged for using the money of another party 4. Maturity value A note that is not paid when it is due 5. Dishonored note 6. Maker The party promising to pay a note 7. Notes receivable The amount due that must be paid at the due date of a note receivable 8. Interest rate A formal, written instrument of credit that represents amounts due from customers

Answer 1

Solution 1:

The time between the date a note is issued and due date of the note = Term

The dollar amount stated on a promissory note = Face amount

The stated rate charged for using the money of other party = Interest rate

The amount charged for using the money of other party = interest

A note that is not paid when it is due = Dishonored note

The party promising to pay a note = Maker

The amount due that must be paid at the due date of note receivables = Maturity value

A formal, written instrument of credit that represents amount due from customer = Note receivables

Solution 2:

Book value of asset exchanged = $41,000 - $36,500 = $4,500

Trade in allowance = $3,000

Recognized loss on trade = $3,000 - $4,500 = $1,500

Hence last option is correct.