Question

ice 11... i need 1a, 2a, 3a solved

PE 10-1A On October 12, Belleville Co. borrowed cash from Texas Bank by issuing a 30-day note with a face amount of $70,000, a. Determine the proceeds of the note, assuming the note carries an interest rate of 6%. b. Determine the proceeds of the note, assuming the note is discounted at 6%. Proceeds from notes payable OBJ. 1 EE 10-1 p.457 HOW PE 10.1 B On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount of $150,000 a. Determine the proceeds of the note, assuming the note carries an interest rate of 10%. b. Determine the proceeds of the note, assuming the note is discounted at 10%. Proceeds from notes payable EE 10-1 457 OBJ. 1 HOW PE 10-2A Lily Flower's weekly gross earnings for the present week were $2,500. Flower has two ex- emptions. Using the wage bracket withholding table in Exhibit 3 with a $75 standard with holding allowance for each exemption, what is Flower's federal income tax withholding? Federal income tax withholding EE 10-2 p 459 OBJ. 2 Chapter 10 Current Liabilities and Payroll 481 EE 10-2 p 459 PE 10-2B Federal income tax withholding OBJ. 2 Marsha Mellow's weekly gross earnings for the present week were $1,250. Mellow has one exemption. Using the wage bracket withholding table in Exhibit 3 with a $75 standard withholding allowance for each exemption, what is Mellow's federal income tax with holding SHOW ME HOw EE 10-3 p40 PE 10-3A Employee net pay OBJ. 2 Lily Flower's weekly gross earnings for the week ended October 20 were $2,500, and her federal income tax withholding was $517.24. Assuming the social security rate is 6% and Medicare is 1.5% of all earnings, what is Flower's net pay? ME HOW

Answer 1

Solution 10-1A

Proceeds from an interest-

bearing note are given by

Face value =P(1+r × d/365)

Face value =$70,000 (this amount will be need to pay after maturity)

P = the discounted amount we get upfront =?

d =time to maturity in days =30days

P =(1+0.6×30/365) =$70,000

P=$70,000/1.0493151

P=$66,710

b.) Proceeds from discounted note

=face value of the note - discount

Discount on a short term note

=face value × discount rate ×days to maturity/365

$70,000×6%×30/365 =$345

Proceeds =$70,000-$345

=$69,655