Determine the due date and the amount of interest due at maturity on the following notes: Date of NoteFace AmountInterest RateTerm of Notea.January 10*$40,000 5%90 days b.March 1918,000 8 180 days c.June 590,000 7 30 days d.September 836,000 3 90 days e.November 2027,000 4 60 days *Assume that February has 28 days.Assume 360-days in a year when computing the interest.NoteDue DateInteresta. $fill in the blank 2b. fill in the blank 4c. fill in the blank 6d. fill in the blank 8e. fill in the blank 10

Interest on Note = Face value X Rate of interest X Tenure in days/ 360 days

Answered: Determine the due date and the amount…

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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Determine the due date and the amount of interest due at maturity on the following notes:

	Date of Note	Face Amount	Interest Rate	Term of Note
a.	January 10*	$40,000			5%	90 days
b.	March 19	18,000			8	180 days
c.	June 5	90,000			7	30 days
d.	September 8	36,000			3	90 days
e.	November 20	27,000			4	60 days

*Assume that February has 28 days.

Assume 360-days in a year when computing the interest.

Note	Due Date	Interest
a.		$fill in the blank 2
b.		fill in the blank 4
c.		fill in the blank 6
d.		fill in the blank 8
e.		fill in the blank 10

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