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: Briton manufacturing proces tennis

A: Step 1: Definition of Direct Materials Price and Quantity VariancesPrice Variance: Measures the…

Q: Do not use ai please given answer financial accounting

A: To calculate the fair value of the investment, you can use the formula for the present value of a…

Q: Operating expenses

A: Step 1: Definition of Straight-Line DepreciationStraight-line depreciation is a method of allocating…

Q: Problem 3.5 general accounting

A: Step 1: Identify the relevant data Step 2: Formula for fixed manufacturing overhead budget variance…

Q: Solve this question general Accounting

A: Step 1: Define Holding Period Total Return (HPTR)If an investor holds an asset, mainly investments…

Q: What is the earnings per share of this financial accounting question?

A: Step 1: Define Financial RatiosFinancial ratios are essential for managers, helping them evaluate…

Q: Need help with this general accounting questions

A: Step 1: Define Financial RatiosIn managerial accounting, financial ratios are important ratios. In…

Q: Ames Trading Co. has the following products in us ending inventory. Compute lower of cost or market…

A: Key Information ProvidedProductQuantityCost per UnitMarket per UnitMountain…

Q: The accounts receivable balance is?

A: Explanation of Accounts Receivable Balance:This represents the total amount of money owed to a…

Q: Financial accounting

A: Step 1: Define Net IncomeNet income can be defined as the total revenue or income an individual or…

Q: General accounting

A: Key InformationPrincipal (Loan Amount): $43,000Monthly Interest Rate: 2% (0.02)Loan Period: 4 years…

Q: Provide answer general accounting

A: Step 1: Define Absorption CostingIn cost accounting, absorption costing refers to the proper…

Q: What was the cash balance on November 1?

A: Explanation of Cash Receipts:Cash receipts refer to the total amount of money received by a company…

Q: What is the total cost of vacation pay and pension rights to be recognized in the first year?

A: In the first year of operations, the company must recognize the total cost of vacation pay and…

Q: problem related to accounting subject

A: Explanation of Overapplied or Underapplied Overhead:Overapplied overhead occurs when the applied…

Q: None

A: Step 1: Identify the formula Step 2: Input the values Step 3: Subtract the Standard Deduction from…

Q: Provide answer general Accounting

A: To calculate the net income, we use the relationship between Return on Equity (ROE) and net income:…

Q: Given answer accounting questions

A: Solution:The weighted average of the company's debt is the proportion of the total capital…

Q: Solve this question financial accounting

A: Step 1: Define Total AssetsThe total assets reflect on the balance sheet. Any change in total assets…

Q: Hii expert please provide correct answer general Accounting

A: Step 1: Define Standard CostThe standard cost is the benchmark that a company set to produce one…

Q: The total cost?

A: Explanation of Activity-Based Costing (ABC)Activity-Based Costing (ABC) is a costing method that…

Q: Prblm general accounting

A: To calculate the break-even point in monthly unit sales, we use the break-even formula:…

Q: What is the beginning and ending amounts?

A: To calculate the beginning and ending amounts of equity, we can use the basic accounting equation:…

Q: ????

A: To calculate the average fixed cost, we need to first determine the total fixed cost.Total Fixed…

Q: I want to correct answer general accounting question

A: Step 1: Definition of Cash from Operating ActivitiesCash from operating activities represents the…

Q: ANSWER THIS GENERAL ACCOUNTING QUESTION

A: Explanation of Fixed Overhead Budget Variance: The fixed overhead budget variance measures the…

Q: General Account Subject Questions

A: Step 1: Understand the ScenarioBeginning WIP Inventory:6,000 units, 50% complete with respect to…

Q: How much is the material quantity variance?

A: Explanation of Standard Cost:This is a predetermined cost per unit that represents what a product…

Q: Need help this question general accounting

A: Cash Paid = Salary Expense - Increase in Salary PayableCash Paid = 875,000 - 39,000Cash Paid =…

Q: In August, purchases of materials equaled $9,750, the beginning inventory of materials was $850, and…

A: Explanation of Cost of Materials UsedThe cost of materials used represents the amount of raw…

Q: Financial Account Subject

A: Step 1: Introduction to cost accountingThe field of accounting known as cost accounting is utilized…

Q: Jolly Company has the following budgeted sales in units for the next three months: Budgeted Sales in…

A: Step 1: Key InformationBudgeted Sales in Units:May: 2,900 unitsJune: 6,300 unitsJuly: 4,100…

Q: Ans

A: Explanation of Predetermined Overhead Rate:The predetermined overhead rate is a cost allocation tool…

Q: Kindly help me with accounting questions

A: Step 1: Definition of Accounts Receivable BalanceThe accounts receivable balance represents the…

Q: What is price printing company's return on assets?

A: Calculation:ROA= Net Income / Total AssetsROA = $1,000,000 / $8,000,000 ROA = 0.125ROA converting…

Q: Solve ths quation Accounting question

A: Step 1: Define Accounts ReceivableWhen a company makes credit sales, it debits the accounts…

Q: Tutor give me answer

A: The ABC system allocates overhead costs to products based on their usage of activities. Each…

Q: I won't to this question answer general Accounting

A: To analyze the offer from the Bikers' Club, we need to evaluate the contribution margin from the…

Q: What was the total assets on AWQ's balance sheet at end of the year?

A: Explanation of Common Stock:Common stock represents ownership in a company and is issued to raise…

Q: Which type of corporate information is not available to investors? a. Dividend history b. Beginning…

A: Step 1: Correct option with Explanation d) Forecast of cash needs for the upcoming yearForecasts are…

Q: Kindly help me with accounting questions

A: Step 1: Definition of Adjusting Entry for SuppliesAdjusting Entry for Supplies: At the end of the…

Q: Provide answer general accounting

A: To determine the appropriate adjusting entry, we calculate the wages earned by the employees for the…

Q: Do fast answer of this accounting questions

A: To calculate the direct materials price and quantity variances, we will use the following formulas:…

Q: What is the value of ending inventory using the variable costing method? General accounting

A: Step 1: Define Variable Costing MethodAs the name suggests, in the variable costing only the…

Q: Need answer the financial accounting question

A: Step 1: Define Effective Interest RateThe effective interest rate can be a useful tool to analyze…

Q: None

A: Step 1: Define Return on AssetsThe return on assets shows the amount of net income as a percentage…

Q: Department L had 600 units 60% completed in process at the beginning of June, 6,000 units completed…

A: To calculate the equivalent units of production for conversion costs using the First-In, First-Out…

Q: General accounting

A: Step 1: Define Gross Pay vs. Net PayThe gross pay an employee receives is the amount of their hourly…

Q: If you give me correct answer I will give you helpful rate on these financial accounting question

A: The annual interest expense on a loan can be calculated using the formula: Interest Expense = Loan…

Q: Sea Harbor, Inc. has a marginal tax rate of.... Please need answer the accounting question

A: Step 1: Define Income TaxThe overall taxes of an economy can be broadly categorized into direct…

Question

General accounting question

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
Chang Co. issued a $59,741, 120-day, discounted note to Guarantee Bank. The discount rate is 8%. Assuming a 360-day year, the cash proceeds to Chang Co. are:
Assuming a 360-day year, proceeds of $48,750 were received from discounting a $50,000, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was a.10.00% b.9.75% c.10.26% d.6.25%
Assuming a 360-day year, proceeds of $45,552 were received from discounting a $46,830, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was а. 12.16% b. 12.67% C. 8.92% Od. 10.92%
BBY Company loaned $66,116 to Orwell, Inc, accepting Orwell's 2-year, $80,000, zero-interest-bearing note. The implied interest rate is 10%. Prepare BBY's journal entries for the initial transaction, recognition of interest each year, and the collection of $80,000 at maturity. Debit - Notes Receivable $80,000 Credit - Credit - Cash Debit - Credit - Debit - Credit - Interest Revenue 6.026 DEC 16 618 10