Compute the due date, amount of interest and total cash received on the maturity date for the following notes receivable:1-Date of Note: May 30; $24,000, 9%, 120 days2-Date of Note March1; $32,500, 8%, 90 days3-Date of Note November6; $400,000, 12%; 5months 1-Date of Note: August 5; S180000, 8%, 120 daysDue Date:Interest:August (31-5)SeptOct26180000*8%*120/360= $48003031Total cash received=S180000+S4800=s184800Nov30(Maturity Value)Dec31202-Date of Note October 1; $12,500, 12%, 60 daysInterest:12,500*.12*60/360=$250Due Date:October (31-1)November303060Total cash received=$12,500+$250=$12,750(Maturity Value)3- Date of Note March 6; $10,000, 9%; 3 monthsInterest:10,000*.09X 3/12=$225Due Date:June 6Total cash received= $10,000+225=$10,225(Maturity Value)

Formula: Interest amount = face value of note x Interest rate Maturity value = Principal value +…

Compute the due date, amount of interest and total cash received on the maturity date for the following notes receivable: 1-Date of Note: May 30; $24,000, 9%, 120 days 2-Date of Note March1; $32,500, 8%, 90 days 3-Date of Note November6; $400,000, 12%; 5months

Compute the due date, amount of interest and total cash received on the maturity date for the following notes receivable: 1-Date of Note: May 30; $24,000, 9%, 120 days 2-Date of Note March1; $32,500, 8%, 90 days 3-Date of Note November6; $400,000, 12%; 5months

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Compute the due date, amount of interest and total cash received on the maturity date for the following notes receivable:

1-Date of Note: May 30; $24,000, 9%, 120 days

2-Date of Note March1; $32,500, 8%, 90 days

3-Date of Note November6; $400,000, 12%; 5months

1-Date of Note: August 5; S180000, 8%, 120 days
Due Date:
Interest:
August (31-5)
Sept
Oct
26
180000*8%*120/360= $4800
30
31
Total cash received=S180000+S4800=s184800
Nov
30
(Maturity Value)
Dec
3
120
2-Date of Note October 1; $12,500, 12%, 60 days
Interest:
12,500*.12*60/360=$250
Due Date:
October (31-1)
November
30
30
60
Total cash received=$12,500+$250=$12,750
(Maturity Value)
3- Date of Note March 6; $10,000, 9%; 3 months
Interest:
10,000*.09X 3/12=$225
Due Date:
June 6
Total cash received= $10,000+225=$10,225
(Maturity Value)

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