Use the information from Cen, Inc. to answer questions
Cen, Inc. reported the following on its December 31, 2017, balance sheet:
$\begin{array}{lrr}
\text { Current liabilities: }&2017&2016\
\hline \text { One-year short-term notes payable, net of discount of } & \$ 9,800 & \$ 6,400 \
\quad \$ 300 \text { and } \$ 400 \text {, respectively } & & \
\text { Accrued interest on notes payable } & 340 & 280 \
\text { Current portion of long-term debt } & 1,250 & 2,340 \
\text { Trade accounts pavable } & 500 & 700
\end{array}$

-How much is the maturity value of the one-year note payable that is outstanding at the end of 2017?
A)$9,500
B)$9,800
C)$10,100
D)$10,400

Question

Use the information from Cen, Inc. to answer questions 
Cen, Inc. reported the following on its December 31, 2017, balance sheet:
 $\begin{array}{lrr}
\text { Current liabilities: }&2017&2016\
\hline \text { One-year short-term notes payable, net of discount of } & \$ 9,800 & \$ 6,400 \
\quad \$ 300 \text { and } \$ 400 \text {, respectively } & & \
\text { Accrued interest on notes payable } & 340 & 280 \
\text { Current portion of long-term debt } & 1,250 & 2,340 \
\text { Trade accounts pavable } & 500 & 700
\end{array}$

-How much is the maturity value of the one-year note payable that is outstanding at the end of 2017?
A)$9,500
B)$9,800
C)$10,100
D)$10,400

Quizplus · Accepted Answer

The maturity value of the one-year note payable at the end of 2017 is the face value of the note, which is the reported value plus the discount. The reported value is $9,800, and the discount is $300, making the maturity value $9,800 + $300 = $10,100.

Use the Information from Cen, Inc -How Much Is the Maturity Value of the One-Year Note