On April 7, 2020, Wilhelm, Inc. sold goods for $50,000 and accepted a 10%, 60-day note. On April 22, 2020, the company sold the note to a bank at a 13% discount rate. Required: Compute the amount of cash received from the sale (discounting).

On April 7, 2020, Wilhelm, Inc. sold goods for $50,000 and accepted a 10%, 60-day note. On April 22, 2020, the company sold the note to a bank at a 13% discount rate. Required: Compute the amount of cash received from the sale (discounting).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Big Bang Company accepted a P400,000 face value, six-month, 10% note dated May 15 from a customer.…

A: Maturity value of the note = Face value of note + interest = P400000 + (400000*10%*6/12) = P420,000

Q: On December 31, 2018, Cavite Company sold equipment to Bulacan Company for P380,000. Cavite…

Q: On January 1, 2016, The Barrett Company purchased merchandise from a supplier. Payment was a…

A: Present value:

Q: On December 31, 2020, Salem Co. has $5,000,000 of short-term notes payable due on March 1, 2021. On…

Q: A private enterprise sold some merchandise for $160,000 on January 1, 2020. The customer paid…

A: It is the current value of future sum of money to be received at specified interest rate

Q: On September 30, 22, Choco Lanay Company discounted at the bank a customer's P1,750,000 6 month 12%…

A: Note receivable can be converted into cash by selling them to a financial institution at a discount.…

Q: On December 31, 2022, Company sold land in exchange for a nine-month, 10% note. The note requires…

A: As per the given information: Land sold in exchange for a nine-month,10% note.Payment - $200,000…

Q: M&N Ltd sells security doors. Majority of its sales are on credit except small amount of cash sales…

A: Step 1 Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for…

Q: ABC Company finances some of its current operations by factoring its accounts receivable to a…

A: Factoring is a process where the accounts receivable are sold by the entity to the finance company…

Q: How much was Bae’s proceeds from the discounted note?

A: Bae inc. Sold equipment to Beau Inc. On july 1, 2020 for P250000. Bae accepted a note receivable…

Q: March 30 Loaned an officer of the company $30,000 and received a note requiring principal and…

A: Journal entries are the first step of accounting. All day to day transaction and events such as…

Q: On 10/1/2020, Al-Salam stores purchased goods from Al-Hamid stores for the amount of 800,000 dinars…

A: Required Journal enrty for payment made.

Q: ABC Company accepted from a customer ₱600,000 face amount, 9-month, 8% note dated June 15, 20x2. On…

A: Discount on note @12% = Face value of note x rate of discount x no. of months/12 = ₱600,000 x 12% x…

Q: 1)What are the proceeds of $1,000,000 deposited in a bank on July 10 for 1 month at 1.5%? Take care…

A: Since you have posted multiple questions, we will solve the first question for you. If you want any…

Q: ABC Company received a P1,800,000, 90-day, 12% note from a customer as payment for goods sold on…

A: In the context of the given question, we are required to compute the loss on discount to be recorded…

Q: 2021 Oct 31 Sold goods to Basic Foods, receiving a $31,000, three-month, 6% note. (You do not…

A: Interest accrued on Dec 31, 2021 = Face value of notes x rate of interest x no. of months/12 =…

Q: s at December 31, 2020, compute for the following: 1. What is the Total current assets

A: Account receivables:Account receivables are the current assets of the company that record the amount…

Q: Blue Devil Inc. sold goods to Black Mountain Corp. for $50,000 on March 1, 2020, accepting Black…

A: Interest: Interest is the amount of interest paid on the issue price of the notes by the issuer at…

Q: Yolo Corporation experienced financial difficulty in 2020. It decided to go into note receivable…

A: Journal Entries- Journal entries are the visual representation of business transactions. A general…

Q: On April 1, 2023, Blue Corporation assigns $490,000 of its accounts receivable to First National…

A: Journal entries are those which are reported in the books of accounts in order to maintain a proper…

Q: Arvan Patel is a customer of Bank’s Hardware Store. For Mr. Patel’s latest purchase on January 1,…

A: Total interest on Note = face value of note x rate of interest x no. of years = $459,505 x 14% x 2…

Q: On September 14, 2024 a note signed on February 3, 2024 matures for $8,000. The simple discount rate…

A: Note issue date = 3 February 2024Note maturity date = 14 September 2024Amount = $8000Discount rate =…

Q: On September 30, 2016, a corporation sold to a bank, a customer's 18 percent, 60-day note, dated…

A: The note receivables received by an entity entitles that entity to receive the amount stated in that…

Q: ook Inc. accepts on April 1, 2022 a 120-day 12% note for $8,000 worth of accounts receivable past…

A: At maturity, notes are often utilized in a variety of financial transactions, including loans,…

Q: How much interest expense should the company report as a result of discounting, assuming the…

A: Discounting notes is the process of selling a promissory note to a third party—typically a financial…

Q: A company sold goods to a customer in exchange for a 5-year, zero-interest-bearing note on January…

A: Given: Face value of the note=$244000Present value factor for 10% and 5 years =0.62 Zero -interest…

Q: On January 1, 2021, NOBLE Company sold goods in exchange for a P5,000,000, 1- year,…

A: Discount on notes = Face value of note x market rate of interest x no. of months/12 = P5000000 x 12%…

Q: On December 31, 2018, Conchita Martinez Company signed a P1,000,000 noninterest bearing note to Sauk…

A: Carrying amount refers to the cost of an asset less the accumulated depreciation.

Q: President Company purchased merchandise from Captain Corporation on September 30, 2024. Payment was…

A: A noninterest-bearing note is a financial instrument or promissory note that does not earn interest…

Q: am.111.

A: The objective of the question is to calculate the amount of money Selkirk Company will receive from…

Q: Selected information from the accounting records of Ellison Manufacturing Company follows: Net sales…

A: A number of days sales in inventory is a ratio that depicts the number of days a company's cash is…

Q: On January 1, 2018, The Barrett Company purchased merchandise from a supplier. Payment was a…

A: Given values: Note period = 5 years. Annual payment = $ 20000 Lump sum payment = $ 100000

Q: On Nov. 16, 2021, JUMBLE BEE sold with recourse a 10%, 60-day, P80,000 note receivable dated Nov. 1,…

A: Discounting a note with a resource means that the firm or business discounting the note agrees to…

Q: Daayata Department Store wishes to discount two notes receivable arising from the sale of…

A: Maturity value of Note A = 50000 as there is no interest. Maturity value of Note B = 50000 + 50000…

Q: Sage Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods…

A: Journal entry records every transaction by using the double-entry system. Sales as per net basis are…

Q: December 5, 2019, PQR Company sold P500,000 worth of inventories with trade discounts of 10%,…

A: Solution: Amount debited to accounts receivables = MRP of inventories - Trade discount

Q: Tagum Inc. required additional cash fo

A: Working note :- Particulars Amiunt P Amiunt P Amount of A/cs Receivables 5,000,000 Loan…

Q: On Nov 1 2021, Calixo Co. accepted a 90 day, 8% $2,000,000 note from Harmony Trading. Calixo Co.…

A: Maturity value of the note = Face value + interest = $2,000,000+2,000,000 *8%*90/360 =…

Q: 3. Total current assets 4. Expenses to be recognized in the statement of comprehensive income in…

A: Current assets: Resources held by the company that can be converted into cash within period of one…

Q: resident Company purchased merchandise from Captain Corporation on September 30, 2024. Payment was…

A: Present value is the equivalent value of future money to be received based on the time value of…

Q: and credit) during the year amounted P5,000,000. Ninety percent of these were made on credit. • The…

A: To Calculate the current assets, Accounts receivable and cash and cash equivalents need to be…

Question

III. On April 7, 2020, Wilhelm, Inc. sold goods for $50,000 and accepted a 10%, 60-day note. On April 22, 2020, the company sold the note to a bank at a 13% discount rate.

Required:

Compute the amount of cash received from the sale (discounting).

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

The company issued a note receivable on September 30th, 2020 for OMR 10,000 with an interest rate of 5%. The maturity date of the note is 11th December, 2020. The note was honored on the maturity date. Calculate the interest amount received by the company on the maturity date assuming 360 days in a year. OMR 101.388 OMR 97.22 OMR 98.61 OMR 100 Calculate the amount of cash and cash equivalents if bank balance is OMR 50, Post-dated cheques are OMR 35, Cash in hand is OMR 75, Advance granted to employees is OMR 85, stationery on hand is OMR 36: ull lis is! TOSHIBA
On July 31, 2020, Clear Company discounted at the bank a customer's P600,000 interest-bearing note, 6-month, 10% note receivable dated May 31, 2020. The bank discounted the note at 12%. The net proceeds from this discounted note is O 576,000 O 564,000 617,400 604,800
1. On December 31, 2018, Conchita Martinez Company signed a P1,000,000 noninterest bearing note to Sauk City Bank. The market interest rate at that time is 12%. The stated interest rate on the note was 10%, payable annually. The note matures in 5 years. Considering these data, the bank released cash to the company amounting to P927,908; i.e., the total of the present value of the principal and interest. Unfortunately, because of lower sales, the company's financial situation worsened. On December 31, 2020, when the carrying amount of the loan is determined to be P951,968, Sauk City Bank determined that it was probable that the company would pay back only P600,000 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the P1,000,000 loan. The present value of 1 at 12% for 3 years is 0.71178 and the present value of an ordinary annuity of 1 at 12% for 3 years is 2.40183. 1.In the note amortization schedule before impairment, how…
vxccvgdrrrrr
On June 12, 2022, FDNACCT Services issued a 90-day, 12%, P430,000 note for money borrowed which was used to purchase several computers. FDNACCT honored the note on maturity date. How much was the total cash paid to settle the note?
Rotel purchased merchandise from TechCom on October 17, 2019. TechCom accepted Rotel's $4,800, 90-day, 10% note as payment. TechCom has a December 31st year end. What entry should TechCom make on January 15, 2020 when the note is honoured? Multiple Choice Cash 4918.36 Interest Earned 19.73 Interest Receivable 98.63 Notes Receivable 4,800 Cash 4918.36 Interest Earned 98.63 Interest Receivable 19.73 Notes Receivable 4,800 Cash 4918.36 Notes Receivable 4918.36 Cash 4918.36 Interest Earned 118.36 Accounts Receivable 4,800 Cash 4918.36 Interest Earned 118.36 Notes Receivable 4,800 The Liccorish Pizza bought $5,000 worth of merchandise from TechCom and signed a 90-day, 10% promissory note for the $5,000. TechCom's journal entry to record the transaction is Multiple Choice Notes Receivable 5,125 Sales 5,125 Accounts…
On June 04, FDN Company sold merchandise to ABC Company and accepted a 90-day, 12% P90,000 note. After 30 days, FDN Company decided to discount the note to XYZ Bank that offers a 14% discount rate. How much is the cash received upon discounting?
Max Corp. sold goods for $36,000 on July 17, 2020, and accepted a 12%, 90-day note. On August 1, the note was sold to a bank at a 15% discount rate. Required: a. Compute the proceeds. Assume a 360-day year. b. If the maker dishonored the note at maturity, prepare the entry for Max Corp. assuming $75 of bank protest fees. If an amount box does not require an entry, leave it blank.
Clariza Frozen Goods Inc. opened its business on January 1, 2020. The Company has the followingtransactions during the year:• Sales (cash and credit) during the year amounted P5,000,000. Ninety percent of these were madeon credit.• The Company granted discounts to its customers as follows:o 3/10, n/30o 2/15, n/30o 1% for all cash customers• Cash received from customers (deposited with Jennifer Bank) amounting to P3,425,000 consistedof:✓ Cash customers P495,000✓ Customers paying within 10 days 1,940,000✓ Customers paying within 15 days 490,000✓ Customers not availing the discounts 500,000• Merchandise returns amounted to P500,000, all related to credit sales.• The Company provided for 2% of its net credit sales as doubtful accounts.Unadjusted balances of some of the Company’s accounts as at December 31, 2020 before closing its booksare as follows:Cash in bank per ledger - Charles Bank P1,500,000Cash in bank per bank statement - Charles Bank 1,775,000Current account - Jennifer Bank…
Grouper Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $550,100 (cost of $510,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $10,100. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Grouper for the full sales price. (a)Prepare the journal entry(ies) to record the sale and related cost of goods sold for Grouper Company on January 2, 2020, and the payment on January 28, 2020. Assume that Grouper Company records the January 2, 2020, transaction using the net method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) (b)Prepare the journal entry(ies) to record the sale and related cost of goods sold for Grouper Company on January 2, 2020, and the payment on January 28,…
Present solution in good accounting form.