On July 31, 2020, Clear Company discounted at the bank a customer's P600,000interest-bearing note, 6-month, 10% note receivable dated May 31, 2020. The bankdiscounted the note at 12%.The net proceeds from this discounted note isO 576,000O 564,000617,400604,800

Net Proceeds from discounted note = Maturity Value - Discount on note

Answered: On July 31, 2020, Clear Company…

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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On September 1,2020, Sunland Company issued a note payable to Fidelity Bank in the amount of $2691000, bearing interest at 9%, and payable in three equal annual principal payments of $897000. On this date, the bank's prime rate was 10%. The first payment for interest and principal was made on September 1, 2021. At December 31, 2021, Sunland should record accrued interest payable of O $89700. O $80730. O $179400, O $53820.
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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