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, 2024, and the principal and interest are due at maturity. For each situation, determine the proceeds received from the bank on discounting the note. Note: Do not round Intermediate calculations. Round your final answers to the nearest whole dollar. Note 1 2 3 4 5 6 Note Face Value Date of Note 3/31/2024 70,000 3/31/2024 70,000 3/31/2024 96,000 6/30/2024 96,000 6/30/2024 96.000 6/30/2024 $ 70,000 Date Discounted 8% 6/30/2024 8% 9/30/2024 8% 9/30/2024 5% 10/31/2024 5% 10/31/2024 5% 11/30/2024 Interest Rate Discount Rate 10% 10% 12% 10% 12% 10% Proceeds Received

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, 2024, and the principal and interest are due at maturity. For each situation, determine the proceeds received from the bank on discounting the note. Note: Do not round Intermediate calculations. Round your final answers to the nearest whole dollar. Note 1 2 3 4 5 6 Note Face Value Date of Note 3/31/2024 70,000 3/31/2024 70,000 3/31/2024 96,000 6/30/2024 96,000 6/30/2024 96.000 6/30/2024 $ 70,000 Date Discounted 8% 6/30/2024 8% 9/30/2024 8% 9/30/2024 5% 10/31/2024 5% 10/31/2024 5% 11/30/2024 Interest Rate Discount Rate 10% 10% 12% 10% 12% 10% Proceeds Received

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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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, 2024, and the principal and interest are due at maturity. For each situation, determine the proceeds received from the bank on discounting the note. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. 1. $ 60,000 3/31/2024 6% 6/30/2024 8% _____ 2. 60,000 3/31/2024 6% 9/30/2024 8% _____ 3. 60,000 3/31/2024 6% 9/30/2024 12% ______ 4. 85,000 6/30/2024 4% 10/31/2024 8% ______ 5. 85,000 6/30/2024 4% 10/31/2024 12% _____ 6. 85,000 6/30/2024 4% 11/30/2024 8% ______
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, 2021, 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 Face Value Interest Rate Discount Rate Proceeds Received Date Note Date of Note Discounted 56,000 3/31/2021 56,000 3/31/2021 8% 6/30/2021 8% 9/30/2021 1 $ 10% 2 10% 3 56,000 3/31/2021 8% 9/30/2021 15% 4 120,000 6/30/2021 5% 10/31/2021 10% 120,000 6/30/2021 120,000 6/30/2021 5% 10/31/2021 5% 11/30/2021 15% 6 10%
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The following interest-bearing promissory note was discounted at a bank by the payee before maturity. Use the ordinary interest method, 360 days, to calculate the missing information. (Round dollars to the nearest cent.)
The following interest-bearing.promissory note was discounted at a bank by the payee before maturity. Use the ordinary interest method, 360 days, to calculate the missing information. (Round dollars to the nearest cent.). Face Value: $1,280 Interest Rate : 7.7 Date of Note: Sept 18 Term of Note (days) : 130 Maturity Date : ? Maturity Value (in $) $? Date of Discount : Dec 11 Discount Period (days) : ? Discount Rate (%) : 11.2 Proceeds (in $): $? If you purchase $28,000 in U.S. Treasury Bills with a discount rate of 4.9% for a period of 26 weeks, what is the effective interest rate (as a %)? Round to the nearest hundredth percent.