Assuming a 360-day year, proceeds of $45,552 were received from discounting a $46,830, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was a. 12.16% Ob. 12.67% Oc. 8.92% Od. 10.92%

Assuming a 360-day year, proceeds of $45,552 were received from discounting a $46,830, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was a. 12.16% Ob. 12.67% Oc. 8.92% Od. 10.92%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Assuming a 360-day year, when a $11,918, 90-day, 10% interest-bearing note payable matures, total…

A: A note payable is a written promissory note. Under this agreement, a borrower borrows a specific…

Q: 10. A bank note is discounted at 6% in order to take advantage of the cash discount On an invoice…

A: The credit terms are 2/15, n/45 that means 2% cash discount is allowed if the payment has been…

Q: A company has a collection period of 36 days and factors all receivables immediately at a discount…

A: Discount rate = 2.6%Number of days in a year = 365 daysCollection period = 36 days

Q: Chang Co. issued a $40,073, 120-day, discounted note to Guarantee Bank. The discount rate is 8%.…

A: THE CASH PROCEED TO CHANG CO WILL BE CALCULATED BY DEDUCTING THE DISCOUNT AMOUNT FROM THE ISSUED…

Q: 1. For the year just ended, a firm had average accounts receivable of $90,000 and total credit sales…

A: Data given: Av. Accounts Receivable=$90,000 Credit sales=$700,000 Discount=1% Required: Firm's…

Q: A 180-day simple interest note was signed on March 15, 20xx with a face value of 65,000 at 8.25% per…

A: Here, Face value = 65,000 Interest rate = 8.25% Discount rate = 11% Time to maturity = 180 days To…

Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 6%, on a 90-day,…

A: Interest charged by the bank -Interest is still calculated as Principal x Interest x Frequency of…

Q: Assuming a 360-day year, when a $9,300, 90-day, 6% interest-bearing note payable matures, total…

A: Note payables means an instrument acknowledging the debt due from company to outsider after certain…

Q: Accounting for Current Liabilities A note payable is issued for a face value of $100,000. The…

A: Note payable refers to the written agreement made between two parties in which the cash is paid by…

Q: Federal Bank of America has loaned $9,000 to Southgate Animal Hospital, using a 90-day…

A: The discount on notes payable comes into existence when face value of note payable is greater than…

Q: Using the table in handbook, the value Multiple Choice $106.03

A: The right answer is d $106.30

Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 12%, on a 90-day,…

A: Interest charged = Notes Payable x Interest rate x 90/360

Q: What is the outstanding balance of the loan after the 2nd year

A: Compound interest is the amount of interest charged on interest. In this method the interest…

Q: Chang Co. issued a $41,871, 120-day, discounted note to Guarantee Bank. The discount rate is 7%.…

A: Cash proceeds from issue of notes : Cash proceeds from the issue of notes mean the amount received…

Q: Assuming a 360-day year, proceeds of $42,936 were received from discounting a $44,037, 90-day note…

A: Discount rate: It can be defined as the rate that is used to derive the present value of all…

Q: Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate…

A: In the period which are less than 1 year than calculations are done based on simple ordinary…

Q: Using ordinary interest, 360 days, calculate the bank discount (in $), proceeds (in $), and…

A: The objective of the question is to calculate the bank discount, proceeds, and effective rate for a…

Q: Pacific Bank pays a 7.00% nominal rate on deposits, with monthly compounding. What effective annual…

A: The effective annual rate (EAR) is calculated using the formula,

Q: Using ordinary interest, 360 days, calculate the bank discount (in $), proceeds (in $), and…

A: Bank discount = Face value *Rate * term/ 360

Q: Suppose that you deposited $1,000 in a savings account at the beginning of a year where the annual…

A: Deposit = $1,000 Annual interest rate = 18% Compounding = monthly

Q: Journalize the following transactions: March 1 Received a $3,000, 90 day, 18 percent promissory note…

A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…

Q: Assuming a 360-day year, when a $17,100, 90-day, 8% interest-bearing note payable matures, total…

A: The note payable is issued to creditor as a promise to pay in future.

Q: Cornbip Company received from a customer a on-year, $500,000 note bearing annual interest of 8%.…

A: The interest amount to be received by the company shall be considered while calculating the amount…

Q: The following certificate of deposit (CD) was released from a particular bank. Find the compound…

A: Deposit amount (P) = $3500 Interest rate (r) = 8% Number of compounding per year (m) = 365 Period…

Q: Assuming a 360-day year, proceeds of $41,011 were received from discounting a $42,171, 90-day note…

A: Amount of discount is $42,171 - $41,011 = $1,160 for 90 days. Therefore for a 360 day year, it would…

Q: Maturity Value (in $) Date of Maturity Face Value Term of Note (days) Interest Rate (%) Note Date…

A: Given: Face value = $1280 Days of note = 130 Interest rate = 7.9%

Q: he following notes receivable transactions occurred for the Hara Compan onths of the current year.…

A: Journal Entry: Date Particulars Debit Credit Oct 09 12% Notes Receivable - Kanda $5,000…

Q: 1.Justine Company received the proceeds of P48,750 from discounting a P50,000, 90-day note at…

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: A company factored $100,000 of accounts receivables. The factor discounted the receivables for 9%…

A: The Factoring accounts receivable is an process where the company sells its accounts receivable to a…

Q: The effective annual rate of discount has been 4% for the last 5 years. Prior that, it was 5%. A…

A: Present value refers to the current value of an asset that will be present at some future date using…

Q: Mobile Co. issued a $58,116, 60-day, discounted note to Guarantee Bank. The discount rate is 7%. At…

A: Note are form of loan taken or issued by the company. They can be discounted from the bank.

Q: The annual percentage rate of interest is

A: The annual percentage rate (APR) is the true cost of borrowing money, including the interest rate…

Q: Using ordinary interest, 360 days, calculate the bank discount (in $), proceeds (in $), and…

A: Bank discount = Face value*discount rate* term in days/total days Proceeds = Face value - bank…

Q: Assuming a 360-day year, proceeds of $52,258 were received from discounting a $52,919, 90-day note…

A: A bank is a financial institution that regulates the money supply in an economy. A note is a…

Q: Using ordinary interest, 360 days, calculate the missing information for the simple discount note.…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: Assuming a 360-day year, when a $14,700, 90-day, 12% interest-bearing note payable matures, total…

A: The term note payable refers to the promissory agreement between two parties in which one party…

Q: On Oct 1, 20X1 ABC Co. discounted a one year 12% P600,000 note received from a customer on January…

A: Note discounting: Note discounting means selling or pledging of the notes to the bank prior to the…

Q: The following certificate of deposit (CD) was released from a particular bank. Find the compound…

A: A Certificate of Deposit refers to a time deposit that provides the holder with fixed interest for a…

Q: loan of 15700 was charged a simple discount rate of 4.2%. If the proceeds received were 15463.72,…

A: find the amount of bank discount.:: Bank discount=Proceeds -Maturity value=$15463.72-$15700=238.28$…

Q: The following certificate of deposit (CD) was released from a particular bank. Find the compound…

A: The compound amount is the future value or accumulated value. Compound amount = Amount of deposit *…

Q: effective

A: Formula to calculate the Effective Annual Rate is: i = (1+r/m)^m - 1 where r is the interest rate…

Question

Assuming a 360-day year, proceeds of $45,552 were received from discounting a $46,830, 90-day note at a bank. The discount rate used by
the bank in computing the proceeds was
а. 12.16%
b. 12.67%
C. 8.92%
Od. 10.92%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Computing the Proceeds from the Sale of Notes Receivable Below are several customer notes receivable that were sold without recourse. 1. An $8,000, 60-day, non-interest-bearing note sold after 15 days at 12%. 2. A $10,000, 12%, 60-day note sold after 30 days at 14%. 3. A $4,000, 10%, 90-day note sold after 30 days at 12%. 4. A $12,000, 12%, 120-day note sold after 45 days at 15%. Required: Determine the proceeds from each of the preceding sales of customer notes receivable. (Assume a 360-day year.) Do not round intermediate calculations. When required, round your final answers to the nearest dollar. If an amount is zero, enter "0". Note 1 Note 2 Note 3 Note 4 Face Value of Note Interest to maturity Maturity Value Discount Proceeds
Assuming a 360-day year, proceeds of $47,444 were received from discounting a $48,147, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was a. 7.59% Ob. 7.08% Oc. 5.84% Od. 3.84%
Mf3. : An entity took UAH 100,000 loan for 5 at 26% of annual interest rate. Interests are paid annually. A bank is using annuity due scheme. Interest revenue for a bank in period 1 is: An entity took UAH 100,000 loan for 5 at 26% of annual interest rate. Interests are paid annually. A bank is using annuity due scheme. Principal, paid in the fourth period, is: Outstanding loan amount is USD 17,000.00. Annuity is USD 4,315.27, interest rate is 18%. The amount of principal, paid in the given period is: Outstanding loan amount is USD 22,000.00. Annual interest rate is 11%. Interest is paid at the end of each year. In the given period bank received USD 4,300.00 of principal payment. The annuity amount is:
Computing the Proceeds from the Sale of Notes Receivable Below are several customer notes receivable that were sold without recourse. 1. An $8,000, 60-day, non-interest-bearing note sold after 15 days at 12%. 2. A $10,000, 12%, 60-day note sold after 30 days at 14%. 3. A $6,000, 10%, 90-day note sold after 30 days at 12%. 4. A $16,000, 12%, 120-day note sold after 45 days at 15%. Required: Determine the proceeds from each of the preceding sales of customer notes receivable. (Assume a 360-day year.) Do not round intermediate calculations. When required, round your final answers to the nearest dollar. If an amount is zero, enter "0". Note 1 Note 2 Note 3 Note 4 Face Value of Note Interest to Maturity Maturity Value Discount Proceeds
Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 9%. Use the ordinary interest method. (Use Days in a year table.) Note: Do not round intermediate calculations. Round your final answers to the nearest cent. Face value (principal) $ 27,200 Rate of interest 9% Length of note. 60 days Maturity value Date of note August 23 Date note discounted September 18 Discount period Bank discount Proceeds
Assuming a 360-day year, proceeds of $43,722 were received from discounting a $44,958, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was O a. 12.24% b. 11.00% c. 9% Od. 12.75%
10. A bank note is discounted at 6% in order to take advantage of the cash discount On an invoice for $8,080.00 plus shipping charge of $42.00. The credit terms Are 2/15, n/45. $_ c. What is the face value of the loan? d. How much did the bank earn on this transaction? $. e. How much was saved? $. %24
RO 6,000, 2-month, non-interest-bearing note payable was discounted by a bank at 9%. The amount of the proceeds were a. 5946 b. 6054 c. 5910 d. 600
USE THE FOLLOWING INFORMATION FOR THIS QUESTION: Installment note payable borrowed from the bank Present value interest factor from table Signed for Annual interest rate Payments are made 195,060 $7,802 $99,442 The outstanding loan balance at the end of year 3 equals what amount? $103,420 zero $287,000 unable to determine 2.77509 3 years 4% Annually
Shelley Corporation discounted a $7,000, 90-day note dated June 18 at the Sunshine Bank on July 18 at a discount rate of 12%. (Assume the $7,000 is the maturity value.) The amount of bank discount is: Multiple Choice $6,790 $210 $140
Assuming a 360-day year, proceeds of $46,510 were received from discounting a $47,941, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was a.13.18% b.13.69% c.9.94% d.11.94%
Justine Company received the proceeds of P48,750 from discounting a P50,000, 90-day note at Metrobank. The discount rate used by the bank in computing the proceeds was