Chapter 8 - Simple Interest ApplicationsFind the proceeds and the discount.A 110 day promissory note for $1,300 with interest at 10.89%, issued March 20, 2011 is discounted (sold) on May 14, 2011 at aninterest rate of 10.15%.(The dates must be answered in the following format: January 1, 2012)(Do not include the $ sign when entering money values.)Legal due date =Number of days =Future value =Days left after discount =The sale value (proceeds) =Amount of discount =Check

The promissory note is a debt obigation tobe fullfilled by the debtor…

Answered: I the proceeds anc

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I the proceeds anc

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

Chapter 8 - Simple Interest Applications
Find the proceeds and the discount.
A 110 day promissory note for $1,300 with interest at 10.89%, issued March 20, 2011 is discounted (sold) on May 14, 2011 at an
interest rate of 10.15%.
(The dates must be answered in the following format: January 1, 2012)
(Do not include the $ sign when entering money values.)
Legal due date =
Number of days =
Future value =
Days left after discount =
The sale value (proceeds) =
Amount of discount =
Check

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