On July 10, Harrison Corp. borrowed cash from Florida Bank by issuing a 90-day note with a face value of $120,000. a) Determine the proceeds of the note, assuming that the note carries an interest rate of 8%. b) Determine the proceeds of the note, assuming that the note is discounted at 8%.

On July 10, Harrison Corp. borrowed cash from Florida Bank by issuing a 90-day note with a face value of $120,000. a) Determine the proceeds of the note, assuming that the note carries an interest rate of 8%. b) Determine the proceeds of the note, assuming that the note is discounted at 8%.

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 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....

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Question

Provide correct answer this financial accounting question

On July 10, Harrison Corp. borrowed cash from Florida
Bank by issuing a 90-day note with a face value of
$120,000.
a) Determine the proceeds of the note, assuming that the
note carries an interest rate of 8%.
b) Determine the proceeds of the note, assuming that the
note is discounted at 8%.

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