Amortization of a Notes Receivable Issued at a Premium (Intermediate Financial Accounting #19)

This tutorial should be fairly straightforward if you understood how to amortize a discount on notes receivable. We've received a note receivable from the issuer (Wolverine Labs) and we'll go about recognizing it, making the required adjustments and derecognizing it by the end.
We also fill out another amortization schedule throughout the video.
REMEMBER, if the coupon rate is greater than market rate, it's a premium. If the coupon rate is less than market rate, it's a discount.
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[@danielpramberger3495]

Thanks

[@rob8482]

Good explination, had a moment of clarity for once concerning this topic. Very cool. THX

[@friendsholic]

Awesome, thanks makes clearer for me. I do have one question though. What if instead of loaning, they sold inventory costing let's say $65K, 6 year, 8% bearing note with a face value of $100K & market rate 4%? Would you still use the face value to calculate the premium or the inventory cost?

[@sofiajay3282]

Hi... how to know where to use present value and when to use future value? Isn’t the videos are numbered or in sequence so that it flows in order? Thanks

[@NotepirateDave]

Present value is used to find the value of a future cash flow in "today's" $. Future value is used to find the value of a present cash flow in "tomorrow's" $.

[@user-sm5vu7rq1n]

super!

[@udishamerwal2620]

Still helpful after 8 years. Thank you so much 🫶