Determine due date and interest on notes Determine the due date and the amount of interest due at maturity on the following notes: Face Amount Interest Rate Term of Note $93,000 120 days 27,000 30 days 66,000 c. May 19 45 days. d. August 20 32,400 90 days. 48,000 7 e. October 19 90 days *Assume a non-leap year in which February has 28 days. Assume 360 days in a year when computing the interest. Interest Date of Note a. January 5* b. February 15* Due Date 6% 4 8 5

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Question

Subject : Accounting

 

 

Determine due date and interest on notes
Determine the due date and the amount of interest due at maturity on the following notes:
Date of Note
Face Amount
Interest Rate
a. January 5*
b. February 15*
c. May 19
d. August 20
e. October 19
a.
b.
8
32,400
5
48,000
7
*Assume a non-leap year in which February has 28 days.
Assume 360 days in a year when computing the interest.
Note
Due Date
C.
d.
$93,000
27,000
66,000
e.
6%
Interest
4
Term of Note
120 days
30 days
45 days
90 days
90 days
Transcribed Image Text:Determine due date and interest on notes Determine the due date and the amount of interest due at maturity on the following notes: Date of Note Face Amount Interest Rate a. January 5* b. February 15* c. May 19 d. August 20 e. October 19 a. b. 8 32,400 5 48,000 7 *Assume a non-leap year in which February has 28 days. Assume 360 days in a year when computing the interest. Note Due Date C. d. $93,000 27,000 66,000 e. 6% Interest 4 Term of Note 120 days 30 days 45 days 90 days 90 days
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Accounting for Notes
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.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education