USA Note's discount amount exceeds note's balance

[ICU812]

Due to the terms and conditions of a note payable I have, the current note's discount amount exceeds its current principal amount. If I were to continue to net the two amounts together, I would report a negative loan amount in my current liabilities. To me, that doesn't make sense. What is the proper GAAP presentation for this situation?

 

[kirby]

You are correct in that this situation does not make sense. I would re-visit the discount calculation as the problem most likely is there.

 

[Counterofbeans]

I don't think your discount is accurate. Who would ever do such a deal and/or why would anyone do such a deal?