**Exercise 9-19: Determine Due Date and Interest on Notes****Objective 6:**Determine the due date and the amount of interest due at maturity on the following notes dated in 2016:| Item | Date of Note | Face Amount | Interest Rate | Term of Note ||------|-----------------|-------------|----------------|--------------|| a. | January 3* | $80,000 | 6% | 120 days || b. | February 20* | 27,000 | 4% | 30 days || c. | May 24 | 62,500 | 8% | 45 days || d. | August 30 | 30,000 | 5% | 90 days || e. | October 4 | 40,000 | 7% | 90 days |*Note: February 2016 has 29 days (leap year).### Instructions:1. **Determine the due date** of each note by adding the term of the note to the date of the note.2. **Calculate the interest due** at maturity for each note using the formula: \[ \text{Interest} = \text{Face Amount} \times \left(\frac{\text{Interest Rate}}{100}\right) \times \left(\frac{\text{Term of Note}}{365}\right) \]Provide detailed explanations for each step to ensure understanding.

Notes Payable The purpose of arranging the notes payable in the business is to raise the adequate…

OBJ. 6 EX 9-19 Determine due date and interest on notes Determine the due date and the amount of interest due at maturity on the following notes dated in 2016: Date of Note Face Amount Interest Rate Term of Note 120 days 30 days 45 days 90 days 90 days 6% January 3* February 20* May 24 August 30 October 4 $80,000 a. b. 27,000 4 62,500 8. C. 30.000 d. 40,000 7. February 2016 has 29 days.

OBJ. 6 EX 9-19 Determine due date and interest on notes Determine the due date and the amount of interest due at maturity on the following notes dated in 2016: Date of Note Face Amount Interest Rate Term of Note 120 days 30 days 45 days 90 days 90 days 6% January 3* February 20* May 24 August 30 October 4 $80,000 a. b. 27,000 4 62,500 8. C. 30.000 d. 40,000 7. February 2016 has 29 days.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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