Anderson Co. issued a $55,000, 60-day, discounted note to National Bank. The discount rate is 6%. At maturity, assuming a 360-day year, the borrower will pay?
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A: Interest charged = Notes Payable x Interest rate x 90/360
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A: Given that: Note payable = $124800 Interest rate = 7% Period = 90 days
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A: Interest amount on promissory note = note value (principal) x rate x time /100
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A:
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A: Solution: Maturity value of the note is amount that is arrived by adding total amount of interest…
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A: Maturity value is the total amount including the interest on the Notes Receivable till it's maturity…
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A: Discounting of note means receiving payments from a note from the bank after deduction of bank…
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A: Maturity value of Note A = 50000 as there is no interest. Maturity value of Note B = 50000 + 50000…
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A: Cash Proceeds from Notes Receivable = Present Value of Notes
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A: Compute annual interest rate for Colson company for first four month of 2018 as shown below:
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A: Interest charged by the bank = Amount of notes payable x rate of interest x no. of days / 360
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A: Given: Face value = $80,400 Interest rate = 7% Days = 120
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A: Net Proceeds from discounted note = Maturity Value - Discount on note
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A: Solution: In case of discounting of note, proceeds received will be maturity value which is deducted…
Anderson Co. issued a $55,000, 60-day, discounted note to National Bank. The discount rate is 6%. At maturity, assuming a 360-day year, the borrower will pay?
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- A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383Nelson Co. issued a $80,000, 90-day, discounted note to Community Bank. The discount rate is 5%. At maturity, assuming a 360-day year, the borrower will pay how much?Mobile Co. issued a $59,421, 60-day, discounted note to Guarantee Bank. The discount rate is 11%. At maturity, assuming a 360-day year, the borrower will pay: Select the correct answer. $59,421 $52,885 $60,510 $58,332
- Mobile Co. issued a $43,384, 60-day, discounted note to Guarantee Bank. The discount rate is 11%. At maturity, assuming a 360-day year, the borrower will pay: Select the correct answer. A. $43,384 B. $44,179 C. $38,612 D. $42,589On January 26, Nova Co. borrowed cash from Conrad Bank by issuing a 90-day note with a face amount of \( \$ 44, 400 \). Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of \(8\% \). b. Determine the proceeds of the note, assuming the note is discounted at \(8\% \),Kylah Enterprises signs a 3-month, noninterest-bearing note with a stated rate of 13.5% and a maturity value of $215,000? What is the cash proceeds available to the borrower? (Round your answer to 2 decimal places.)
- On January 1, 2022, Easy Company sold merchandise for 500,000 by accepting a note for 6 months with interest to be paid at maturity at 12%. On March 1, the entity discounted the note without recourse at a bank with a 15% discount. How much is the maturity value of the notes receivable?A 102-day note for $85 bears simple interest at 4.5% and is sold 22 days before maturity to a bank that uses a simple interest rate of 8%. What are the proceeds?Bull City Industries is considering issuing a $100,000, 7% note to a creditor on account. Assume a 360-day year. For a compound transaction, if an amount box does not require an entry, leave it blank. a. If the note is issued with a 45-day term, journalize the entries to record: the issuance of the note. the payment of the note at maturity. b. If the note is issued with a 90-day term, journalize the entries to record: the issuance of the note. the payment of the note at maturity.
- On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount of $150,000. Assume a 360-day year. 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%.A bank offered a 1-year loan to a commercial customer. The instrument is a discounted note with a nominal rate of 13%. What is the effective interest rate to the borrower? 13.20% 14.94% 12.00% 10.71% 13.64%On January 26, Vibrant Co. borrowed cash from Conrad Bank by issuing a 90-day note with a face amount of $42,000. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of 7%. $4 b. Determine the proceeds of the note, assuming the note is discounted at 7%.