Martinez Manufacturing issued a $75,000, 90-day, discounted note to Central Bank. The discount rate is 8%. Assuming a 360-day year, the cash proceeds to Martinez Manufacturing are: a) $73,500 b) $74,250 c) $76,500 d) $72,000

Martinez Manufacturing issued a $75,000, 90-day, discounted note to Central Bank. The discount rate is 8%. Assuming a 360-day year, the cash proceeds to Martinez Manufacturing are: a) $73,500 b) $74,250 c) $76,500 d) $72,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

See similar textbooks

Related questions

Q: ElectroCore manufactures circuit modules for solar power inverters. Each module has a standard cost…

A: What is Labor Rate Variance (LRV)? Labor Rate Variance measures how much of the total labor cost…

Q: What is the estimate amount of inventory on hand?

A: Explanation of Beginning Inventory:Beginning inventory refers to the value of inventory a company…

Q: What is the standard cost per output unit

A: Concept of Standard Material CostStandard Material Cost refers to the pre-determined cost a company…

Q: Please provide correct answer for general accounting question not use ai...

A: To calculate absorption costing net operating income, we adjust the variable costing net operating…

Q: Companies have a significant amount of investment in long-lived assets, which include property,…

A: Apple Inc., like many large tech companies, invests significantly in long-lived assets to support…

Q: Can you explain the correct methodology to solve this financial accounting problem?

A: Step 1: Definition of Variable Overhead Spending VarianceVariable overhead spending variance…

Q: Please provide the solution to this general accounting question with accurate financial…

A: Step 1: Definition of Projected Benefit Obligation (PBO)The Projected Benefit Obligation (PBO)…

Q: Beta Inc. is considering whether to continue making a component or to buy it from an outside…

A: Concept of Relevant CostRelevant cost refers to any cost that will change as a result of a specific…

Q: Harris Company assigns overhead cost to jobs on the basis of 120% of direct labor cost. The job cost…

A: Definition of Overhead Application Rate:An overhead application rate is used to allocate indirect…

Q: Please given true option please provide general accounting question solution

A: Step 1: Definition of Cost of Goods Sold (COGS)Cost of Goods Sold represents the direct costs of…

Q: Shri Manufacturing has estimated total factory overhead costs of $625,000 and 25,000 direct labor…

A: To determine whether the overhead is overapplied or underapplied, follow these steps:Step 1:…

Q: Can you explain this general accounting question using accurate calculation methods?

A: To calculate the Capital Turnover Ratio, use the formula:Capital Turnover Ratio = Sales / Average…

Q: Please explain the solution to this general accounting problem with accurate principles.

A: Step 1: Definition of Overhead Applied to COGSOverhead applied to Cost of Goods Sold (COGS) refers…

Q: General Accounting

A: Step 1: Definition of Variable Overhead Efficiency VarianceVariable Overhead Efficiency Variance…

Q: I need assistance with this financial accounting question using appropriate principles.

A: Step 1: Define Return on Equity (ROE) Using DuPont FormulaThe DuPont formula breaks ROE into three…

Q: None

A: To calculate Northstar Manufacturing's asset turnover ratio, we use the formula:Asset Turnover Ratio…

Q: Kraft's contribution margin is 35%. The company is contemplating an advertising campaign that will…

A: Explanation of Contribution Margin: Contribution margin is the difference between sales revenue and…

Q: Please provide the accurate answer to this general accounting problem using valid techniques.

A: Step 1: Define Ending InventoryEnding Inventory is the value of goods that remain unsold at the end…

Q: Could you help me solve this financial accounting question using appropriate calculation techniques?

A: Step 1: Definition of Predetermined Manufacturing Overhead RateThe Predetermined Manufacturing…

Q: Calculate the variance in the petty cash fund

A: Explanation of Petty Cash Fund :A petty cash fund is a small amount of cash maintained by an…

Q: Please provide the correct answer to this general accounting problem using valid calculations.

A: Step 1: Definition of Variable Overhead Efficiency VarianceThe Variable Overhead Efficiency Variance…

Q: I need help with this general accounting problem using proper accounting guidelines.

A: Step 1: Definition of Variable Expenses in CVP Income StatementVariable expenses are costs that…

Q: Please provide problem with accounting question

A: Let's solve each part of the question step by step.Given:Units sold = 25,000Selling price per unit =…

Q: General Accounting

A: Step 1: Define Direct Labor CostDirect Labor Cost refers to the wages paid to workers who are…

Q: Job: 814

A: To find the total manufacturing cost assigned to Job 814 and the unit product cost, we need to…

Q: Financial Accounting

A: Step 1: Definition of Accrual AccountingAccrual accounting is a method that records revenues when…

Q: I am searching for the accurate solution to this financial accounting problem with the right…

A: Step 1: DefinitionsVariable Product Cost per Unit: All variable costs related to producing one unit…

Q: Can you solve this general accounting problem using appropriate accounting principles?

A: Step 1: Definition of Gross Profit at StandardGross Profit at Standard refers to the gross profit a…

Q: Given solution for General accounting question not use ai

A: Step 1: Define Predetermined Overhead RateConcept of Predetermined Overhead Rate The predetermined…

Q: I want the correct answer with accounting question

A: Step 1: Definition of Cost of Goods Manufactured (COGM)Cost of Goods Manufactured (COGM) is the…

Q: What is the weighted average cost per unit?

A: Step 1: DefinitionsConcept of Weighted Average Cost Method:The weighted average cost method is an…

Q: Can you help me solve this general accounting problem with the correct methodology?

A: Step 1: Definition of Net Realizable Value (NRV)Net Realizable Value (NRV) is the amount a company…

Q: Dont use AI tool when solving

A: .Given:Current Ratio = 2.8Acid-Test Ratio = 1.2Working Capital = $420,000Formula for Working…

Q: Not use ai solution please and accounting question

A: Step 1: Definition of Written Down Value MethodThe Written Down Value (WDV) Method of depreciation…

Q: Dear tutor solve with appropriate method.

A: Current Liabilities are obligations that a company expects to settle within one year or its normal…

Q: Can you help me with this general accounting question solution?

A: Step 1: Define Price-to-Earnings (P/E) RatioThe Price-to-Earnings (P/E) ratio is a valuation metric…

Q: Please provide answer this general accounting question

A: Step 1: Definition of Variable Costing Operating IncomeVariable costing operating income (also…

Q: I am searching for the correct answer to this general accounting problem with proper accounting…

A: Step 1: Define Gross Profit and Net ProfitGross Profit is the difference between net sales and the…

Q: Please provide answer this financial accounting question

A: To compute the simple rate of return using average investment, follow these steps:Step 1: Calculate…

Q: I am looking for the correct answer to this general accounting question with appropriate…

A: Step 1: Define Gross ProfitGross Profit is the difference between net sales and the cost of goods…

Q: Financial accounting problem!!

A: Step 1: Definitions Concept of Contribution Margin:The contribution margin is the amount by which…

Q: The fiscal 2023 financial statements for Orion Enterprises, Inc. report revenues of $18,450,000, and…

A: Step 1: Define Net Operating Profit MarginConcept of Net Operating Profit Margin - This ratio…

Q: Solve this

A: Provided Data:Standard labor hours = 540 hours (not needed for labor rate variance)Actual labor…

Q: ??!!

A: Provided Data:Revenue = $160Variable cost = 40% of revenueClaimed contribution margin = $96Step 1:…

Q: solve this question by using appropriate methodology and true answer.

A: We determine the amount of interest the bank collected for Brightstar, Inc., by preparing a bank…

Q: Financial Accounting Question please answer

A: Step 1: Define Accounts Receivable Turnover RateAccounts Receivable Turnover - This financial ratio…

Q: According to CIMA, England, “the technique and process of ascertaining cost” is called a. Costing b.…

A: The correct answer is: a. CostingExplanation:According to CIMA (Chartered Institute of Management…

Q: Sunnylade electr

A: Let's calculate the Net Income step by step using the data provided:Given:Sales Revenue =…

Q: I need assistance with this financial accounting problem using appropriate calculation techniques.

A: Step 1: Define P/E RatioThe Price-to-Earnings (P/E) ratio is a valuation metric that shows how much…

Q: I need help with this general accounting question using standard accounting techniques.

A: Step 1: Definition of Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) is the direct cost…

Question

Please provide the accurate answer to this general accounting problem using valid techniques.

Martinez Manufacturing issued a $75,000, 90-day, discounted note to
Central Bank. The discount rate is 8%. Assuming a 360-day year, the
cash proceeds to Martinez Manufacturing are:
a) $73,500
b) $74,250
c) $76,500
d) $72,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

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 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.
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.
Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight years. What is the amount of the current portion of the noncurrent note payable due in the second year? A. $800 B. $1,000 C. $500 D. nothing, since this is a noncurrent note payable
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
Charleston Co. issued a $60,000, 150-day, discounted note to Heritage Bank. The discount rate is 8%. Assuming a 360-day year, the cash proceeds to Charleston Co. are:
Charleston Co. issued a $60,000, 150-day, discounted note to Heritage Bank. The discount rate is 8%. Assuming a 360-day year, the cash proceeds to Charleston Co. are: Provide answer
Assuming a 360-day year, the cash proceeds to Charleston Co. Are
Elite Corp. issued a $75,000, 90-day, discounted note to Trust Bank. The discount rate is 5%. Assuming a 360-day year, what are the cash proceeds received by Elite Corp.?