Please provide this question solution general accounting Martinez Construction received a promissory note of$20,000 at 10% simple interest for 18 months from one ofits customers. After 6 months, City Bank discounted thenote at a discount rate of 12%. Calculate the proceeds thatMartinez Construction will receive from the discountednote.a. $21,845.50b. $19,760.00c. $22,500.00d. $20,100.00

1. The note is worth $20,000 with 10% interest for 18 months.Interest = $20,000 × 10% × 1.5 =…

Answered: Martinez Construction received a…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterD: Notes Payable And Notes Receivable

Section: Chapter Questions

Problem 3P

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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.
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?
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.
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.
American Bank has loaned $12,000 to Shoreline Petroleum Inc. using a 60-day non-interest-bearing note. The bank discounted the note at 12%. The proceeds of the loan will be a.$240. b.$12,240. c.$12,000. d.$11,760.
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
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Chang Co. issued a $51,600, 120-day, discounted note to Guarantee Bank. The discount rate is 10%. Assuming a 360-day year, the cash proceeds to Chang Co. are ______ .Round your answer to the nearest whole dollar. a.$51,600 b.$56,760 c.$49,880 d.$52,030
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
Kindly help me Accounting question
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

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