I. INTRODUCTION: TYPES OF NEGOTIABLE INSTRUMENTS Money: UCC defines money to mean a “medium of exchange currently authorized or adopted by a domestic or foreign government” 1-201(24). * * The Functions of Money (1) Medium of Exchange Cures two problems with bartering: Double coincidence of wants, e.g. you have a horse you want to trade, and you want a cow—now you need someone who has a cow, and wants a horse. Depreciable commodities (2) Store of Value Money may be used as a store
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of the secured transaction the bank recommends. This will be included in the memo. Negotiable instruments are transferable instruments used as a means of money for trading. These instruments are a promise to pay such as checks, drafts, promissory notes, and certificate of deposits. “A negotiable instrument has three principal attributes: (1) an asset or property passes from the transferor to the transferee by mere delivery or endorsement of the instrument, (2) a transferee accepting the instrument
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Types of Commercial Paper The UCC identifies four basic kinds of commercial paper: promissory notes, drafts, checks, and certificates of deposit. The most fundamental type of commercial paper is a promissory note, a written pledge to pay money. A promissory note is a two-party paper. The maker is the individual who promises to pay while the payee or holder is the person to whom payment is promised. The payee can be either a specifically named individual or merely the bearer of the instrument who
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Revenue bonds are also different because any interest paid is tied to a specific revenue stream, such as the case with a toll-road or an airport. A mortgage note is a “promissory note secured by a document called a mortgage that pledges title to a property as security for the loan” (Kieso et al, 2007, p. 689). When companies account for a mortgage note, they must consider any costs associated with obtaining the mortgage such as points. Another way that companies can have debt is to enter into a capital
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from TechCom by signing a promissory note. TechCom's entry to record the transaction should include a: A.|Debit to Notes Receivable for $75,000.|B.|Debit to Accounts Receivable for $75,000.|C.|Credit to Notes Receivable for $75,000.|D.|Debit Notes Payable for $75,000.|E.|Credit to Sales for $75,000.|| Problem ( 60 points ) SHOW ALL WORK!!!!!!!! |Prepare general journal entries for the following transactions of this company for the current year: Apr 25 - Notes Receivable 4,500Sales
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What actions, policies, strategy are used by the selected organization to motivate innovations among its employees? 3M Company, previously known as the Minnesota Mining and Manufacturing Company is an US MNC. They focus on two core themes – Deep technological competence and Strong product development capabilitie. * Setting stretch targets – such as demarcation of profit generated from X product in Y year sets benchmark for others. * Allocating resources as “Slack” – Ample of space,
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Form and Interpretation Section 1. Form of Negotiable Instruments Commercial Paper – a written promises or obligations that arise out of commercial transactions from the use of such instruments as promissory notes and bills of exchange. Maker – the person issuing a promissory note Drawer – person issuing bill of exchange Money - medium of exchange authorized or adopted by a domestic or foreign government as part of its currency. In literal sense, the term means “cash.” It also includes
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extinguishment of non-current liabilities. 6. Explain the accounting for long-term notes payable. 7. Describe the accounting for the fair value option 8. Explain the reporting of off-balance-sheet financing arrangements. 9. Indicate how to present and analyze long-term debt. *10. Describe the accounting for a debt restructuring. *Material covered in Appendix I. Overview – Long-term Liabilities (Bonds and Notes Payable) A. What is long-term debt? 1. probable future sacrifices
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Nonetheless, Clarkson Lumber had a consistent profitability in the past years. The several reasons still make Mr. Clarkson in cash shortage trouble. First, in 1994, Mr. Clarkson bought out Mr. Holtz’s interest for $200,000. And Mr. Holtz had taken a note for $200,000 with 11% interest to be paid off semi-annually with a installment of $50,000 from 1995 to1996. Second, what’s more, in 1996, Mr. Holtz will take a part of cash from Clarkson Lumber. Especially, semi-annually payment in June will meet a
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Phoebe.” This instrument is a promissory note and a bearer note, and it is negotiable. A promissory note is a written promise made by one person (the maker) to pay a fixed sum of money to another person (the payee) on demand or at a specified future time. The maker of this note is Phoebe. The payee is Quint or bearer. A note that is payable to a specific payee or bearer is a bearer note. A bearer is anyone holding something such as a check, promissory note, bank draft, or bond. This is important
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