Solve with explanation accounting Hernandez Engineering received a promissory note of $15,500at 11% simple interest for 15 months from one of its customers.After 3 months, Union Bank discounted the note at a discountrate of 13%. Calculate the proceeds that Hernandez Engineeringwill receive from the discounted note.a. $18,855.17b. $16,495.62c. $15,339.19d. $12,456.22

Step 1: Define Promissory NotePromissory Note is a written promise to pay issued by the debtor to…

Answered: Hernandez Engineering received a…

Principles of Accounting Volume 1

19th Edition

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Author:OpenStax

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Chapter12: Current Liabilities

Section: Chapter Questions

Problem 16Q: Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual...

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On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
Innovative Engineering received a promissory note of $15500 at 11% simple interest for 15 months from one of its customers. After 3 months union Bank discounted the note at a discount rate of 13% calculate the proceeds that Innovative Engineering will receive from the discounted note $18,855.17 $16,495.62 $15,339.19 $12,456.22
On April 1, Year 1, Halo Co. issued a $5,000 face value discount note to the Capri Bank. The note had a 12 percent discount rate and a one-year term. 8. The amount of cash Halo received on April 1, Year 1, was a. $5,000. b. $4,250. c. $4,400. d. $5,500. 9. The total carrying value of Halo’s liabilities on December 31, Year 1, would be a. $5,600. b. $5,000. c. $5,450. d. $4,850. 10. If Halo Co. earned $2,000 of revenue in Year 1, the amount of net income would be a. $2,000. b. $1,550. c. $1,400. d. $1,850.
On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a 30-day note with a face amount of $63,600. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of 5%.$fill in the blank 1 b. Determine the proceeds of the note, assuming the note is discounted at 5%.$fill in the blank 2
JAB Consulting received a promissory note of $18,500 at 8% simple interest for 15 months from one of its customers. After 6 months, Grove Isle Bank discounted the note at a discount rate of 5% Calculate the proceeds that JAB Consulting will receive from the discounted note. Step 1 When a promissory note is sold before maturity, it is said to be discounted. The maturity value represents the total amount of money a promissory note will be worth after interest has accrued. The maturity value is calculated as follows where the rate is expressed as a decimal and the time is a fraction whose numerator is the given amount of time in months and denominator is 12 months. maturity value = principal(1 + rate ✕ time) The rate was given to be 8%. As a decimal, we have 8% = . Find the maturity value (in $) for the promissory note of $18,500 at 8% interest for 15 months. maturity value = principal(1 + rate ✕ time) = 18,500 1 + ✕ 15 12 = $
On April 1, Year 1, Halo Co. issued a $5,000 face value discount note to the Capri Bank. The note had a 12 percent discount rate and a one-year term. The amount of cash Halo received on April 1, Year 1, was $5,000 O $4,250 O $4,400 $5,500
On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a 90-day note with a face amount of $64,800. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of 9%. b. Determine the proceeds of the note, assuming the note is discounted at 9%.
On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 90-day note with a face amount of $46,800. Assume 360 days in a year. a. Determine the proceeds of the note, assuming the note carries an interest rate of 10%.fill in the blank 1 of 2$ b. Determine the proceeds of the note, assuming the note is discounted at 10%.fill in the blank 2 of 2$

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