After being held for 30 days, a 90-day 15% interest bearing note receivable was discounted at...
After being held for 30 days, a 90-day 15% interest bearing note receivable was discounted at M & T Bank at 18%.
The proceeds received from the bank upon discounting would be the:
a) Maturity value less the discount at 18%.
b) Maturity value plus the discount at 18%.
c) Face value less the discount at 18%.
d) Face value plus the discount at 18%.
Homework Answers
| The proceeds received from the bank upon discounting would be the Maturity value less the discount at 18% |
| The maturity value of note equals the face value plus interest receivable at 15% for 90 days |
| The proceeds received from the bank upon discounting would be the Maturity value less the discount at 18% for 60 days. |
| Option A is correct |
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After being held for 30 days, a 90-day 15% interest bearing note
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Descriptors are provided below for six situations involving notes receivable being discounted at a bank. In...
Descriptors are provided below for six situations involving
notes receivable being discounted at a bank. In each case, the
maturity date of the note is December 31, 2018, and the principal
and interest are due at maturity. For each, determine the proceeds
received from the bank on discounting the note. (Do not
round intermediate calculations. Round your final answers to the
nearest whole dollar.)
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at Fargo Bank and Trust. The bank charged a discount rate of 14
percent. On August 15, Safeway received a notice that Black had
paid the note and the interest on the due date.
Required: Prepare the entries in general journal form to record
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Analyze: If the company...
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Check my wo Descriptors are proved below fc six situations involving notes receivable being discounted at a bank. In each case, the maturity date of the note is Dember 317 18, and the principal and interest are due at maturity. For each, determine the proceeds received from the bank on disconting there. Do not round Intermediate calculations. Round your final answers to the nearest whole dollar.) Note Discount Rate Proceeds Received 109 Note Face Value $ 70,000 70,000 70,000 96,000...
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Descriptors are provided below for six situations involving
notes receivable being discounted at a bank. In each case, the
maturity date of the note is December 31, 2018, and the principal
and interest are due at maturity. For each, determine the proceeds
received from the bank on discounting the note. (Do not
round intermediate calculations. Round your final answers to the
nearest whole dollar.)
Note Date of Note Discount Rate 12% Proceeds Received 12% Note Face Value 60,000 60,000 60,000...
On May 16, 2019, Safeway Company received a 90-day, 9 percent,
$6,000 interest-bearing note from Black Company in settlement of
Black's past-due account. On June 30, Safeway discounted this note
at Fargo Bank and Trust. The bank charged a discount rate of 14
percent. On August 15, Safeway received a notice that Black had
paid the note and the interest on the due date.
Required: Prepare the entries in general journal form to record
these transactions.
Analyze: If the company...
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