On May 12, Alyssa accepted a $5,000 note in granting a time extension of a bill for goods bought by Lucy. The terms of the note were 8% for 120 days. On July 8, Alyssa needed to raise cash and discounted the note at Lucy's bank at a bank discount rate of 9% Calculate Alyssa's proceeds. Use ordinary interest
Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Darcy holds a 200 day note from Brenda. This note was given by Brenda to Darcy since the former ow…
A:
Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…
A: Discount on notes = Notes payable x discount rate x no. of days/360 =$18,000*10%*90/360 = $450
Q: On October 31, Sarah Willis borrowed $5,600 from the Vestal Central Bank. She gave the bank her…
A: The question is based on the concept of discounting notes. Notes are a debt financial arrangement…
Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…
A: Interest on note = Notes payable x interest payable x no. of days/365 = 34,560*10%*45/360 = $432
Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: On May 12, Scott Rinse accepted an $9,500, 11%, 90-day note for a time extension of a bill for goods…
A: A note can be defined as money lent by the issuer to the borrower. The note is a type of loan…
Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: 2, Scott Rinse accepted an $4,500, 11%, 90-day note for a time extension of a bill for goods bought…
A: The notes are given interest rate and based on time period and interest the value of the note is…
Q: On July 14, Gracie Paul accepted a $60,000, 6%, 160-day note from Mike Lang. On November 12, Gracie…
A: In simple discount note, bank discount is the interest that bank deducts in advance. The amount due…
Q: Recall that Kate previously obtained a $15,000 bank loan, signing a note payable, on November 30.…
A: Adjustment Journal Entry for Interest Payment An expense for the firm that occurs during a fiscal…
Q: On May 12, Scott Rinse accepted an $6,000, 14%, 90-day note for a time extension of a bill for goods…
A: Calculation of Discounted Period Between May 12 and June 12, 31 days passed i.e. 90-31 days = 59…
Q: 14, Gracie Paul accepted a $60,000, 6%, 160-day note from Mike Lang. On November 12, Gracie…
A: Notes are issued at the discount and this discount is interest on the note and proceed from note is…
Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…
A: The journal entries are prepared to record daily transactions of the business.
Q: Jennifer Richards went to her credit union to borrow $5,500 at a rate of 8.11 % p.a. The date of the…
A: Data given: P=Loan amount = $ 5,500 r=Rate= 8.11% p.a. Date of the loan = September 7 Date of…
Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…
A: Interest on notes = face value of notes x rate of interest x no. Of days/360 = 37440*8%*30/360 =…
Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…
A: Interest on note = Notes x interest rate x no. of days/365 = (30000-4000)*10%*30/360 = $217
Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…
A: Interest on note = Notes x interest rate x no. of days/365 = 11000*12%*30/360 = $110
Q: n May 4 Ariel signed a simple discount note for $3,500 at 31/2% for 60 days. Calculate the proceeds…
A: The discount rate refers to the debt for a short period that is issued at the discount to par. These…
Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…
A: Maturity value of jones note = Face value + interest = 30000 + 30000*10%*75/360 = $625
Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…
A: Interest on note = face value of note x rate of interest x no. of days/360 = $20,000*8%*45/360 =…
Q: Sidney took a cash advance of $200 by using checks linked to her credit card account. The bank…
A: (a) Cash advance fee = Cash advance x cash advance fee = $200 x 2% = $4…
Q: On April 12, Dr. Rowan accepted a $10,000, 60-day, 11% note from Bill Moss granting a time extension…
A: Solution... Date of acceptance = 12 April Due date = 11 Jun Date of discount = 13 may Discount…
Q: On May 4 Ariel signed a simple discount note for $3,500 at 31/2% for 60 days. Use the simple…
A: Answer : Simple Interest Formula = Amount * interest rate * Days /365 Amount = $3,500 Interest Rate…
Q: Recall that Kate previously obtained a $15,000 bank loan, signing a note payable, on November 30.…
A:
Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…
A: Interest on note = face value of the note x rate of interest x no. Of days/360 = (48960-4000)…
On May 12, Alyssa accepted a $5,000 note in granting a time extension of a bill for goods bought by Lucy. The terms of the note were 8% for 120 days. On July 8, Alyssa needed to raise cash and discounted the note at Lucy's bank at a bank discount rate of 9% Calculate Alyssa's proceeds. Use ordinary interest
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- On July 14, Gracie Paul accepted a $60,000, 6%, 160-day note from Mike Lang. On November 12, Gracie discounted the note at Lend Bank at a 7% rate. (a) What are Gracie’s proceeds, and (b) How much does Mike Lang pay and to who?Jennifer Richards went to her credit union to borrow $5,500 at a rate of 8.11 % p.a. The date of the loan was September 7. Jennifer hoped to repay the loan on January 15. How much will Jennifer pay on January 15 if she pays off the loan on that date?On May 4 Ariel signed a simple discount note for $3,500 at 31/2% for 60 days. Use the simple interest formula to calculate the amount of interest Ariel will pay using ordinary interest.
- Recall that Kate previously obtained a $15,000 bank loan, signing a note payable, on November 30. The note required semiannual interest payments at the rate of 6 percent. The entire principal balance was due two years from the origination date of the note. Kate has been accruing interest on a monthly basis in the amount of $75. Kate would like to know how she should record the interest in May, the month she makes the first interest payment. She is unsure how much expense will need to be recorded in May. The upcoming interest payment is really not Kate’s main concern right now. She was just notified by a lawyer that she is being sued for copyright infringement. Mega Cards Incorporated, one of the largest greeting card companies, believes that one of Kate’s designs is too similar to one of Mega’s designs for it to be coincidence, and has, therefore, decided to sue Kate’s Cards. Mega has a prior reputation for suing small companies and settling out of court for lesser damages. Kate,…Sidney took a cash advance of $200 by using checks linked to her credit card account. The bank charges a cash advance fee of 2 percent on the amount borrowed and offers no grace period on cash advances. Sidney paid the balance in full when the bill arrived. a. What was the cash advance fee? b. What was the interest for one month at an APR of 18 percent? c. What was the total amount she paid? d. What if she had made the purchase with her credit card and paid off her bill in full promptly? Assume the credit card has a 30-day grace period.Recall that Kate previously obtained a $15,000 bank loan, signing a note payable, on November 30. The note required semiannual interest payments at the rate of six percent. The entire principal balance was due two years from the origination date of the note. Kate has been accruing interest on a monthly basis in the amount of $75. Kate would like to know how she should record the interest in May, the month she makes the first interest payment. She is unsure how much expense will need to be recorded in May. The upcoming interest payment is really not Kate’s main concern right now. She was just notified by a lawyer that she is being sued for copyright infringement. Mega Cards Incorporated, one of the largest greeting card companies, believes that one of Kate’s designs is too similar to one of Mega’s designs for it to be coincidence, and has, therefore, decided to sue Kate’s Cards. Mega has a prior reputation for suing small companies and settling out of court for lesser damages. Kate,…
- Lizzie Gunderson is trying to establish a credit history and applied for a Visa credit card. She paid the previous month's statement balance in full. The card carries a finance charge rate of 16%. What is the amount of finance charge if Lizzie pays off the current $168.20 monthly statement balance in full?Jennifer is charged interest of 19.99% per annum on her credit card. Dec-01 Jennifer withdrew $500 as a cash advance from her credit card. Jennifer received her credit card statement, showing a minimum balance owing of Dec-31 $10, due by January 12 Jan-12 Jennifer paid the minimum balance of $10 Feb-12 Jennifer paid the minimum balance of $10 Mar-12 Jennifer paid the minimum balance of $10 Apr-01 Jennifer paid the full balance owing a) Compute the amount of interest charged during the month of December. 500* 19.99% * 31/365 = 8.48 Inrerest from 1st Jan to 11 Jan = 500 * 19.99% * 11/365 = 3.01 Total Interest till 12 Jan (8.48 +3.01) = 11.49 Net principal paid (11.49 - 10) = 1.49 7 b) What is the balance owing at the end of January? _8 BEGINNING BALANCE (500-1.4)* 19.99% * (31-11)/365 19 LESS DEPOSIT 20 RATE 21 T= 22 INEREST 23 BALANCE 24 25 c) What is the balance owing at the end of February? 26 LESS DEPOSIT 27 RATE 28 T= 29 INEREST 30 BALANCE 31 d) What is the balance owing at the end…Ja’Mila makes a $350 purchase with her new credit card. The card has a 21% annual interest rate and $35.00 minimum payment due on the 10th of every month. Given that her starting balance is $350, if she pays the minimum payment by October 5th, what amount, to the nearest cent, is applied to interest? $ What amount, to the nearest cent, is applied to the principal? $
- Ron Prentice bought goods from Shelly Katz. On Aug. 15, Shelly gave Ron a time extension on his bill by accepting a $3,200, 9%, 165-day note. On Nov. 2, Shelly discounted the note at Roseville Bank at 8%. (Use Days in a year table.) What proceeds does Shelly Katz receive? (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.) Proceeds receivedMrs. Shimizu borrowed money from a bank. She received from the bank P1,342 and promised torepay P1,500 at the end of 10 months. Determine (a) simple interest rate (b) discount offered asBanker’s discount. Show your complete solution.Ron Prentice bought goods from Shelly Katz. On April 8, Shelly gave Ron a time extension on his bill by accepting a $2,520, 10%, 190- day note. On July 14, Shelly discounted the note at Roseville Bank at 10%. (Use Days in a year table.) What proceeds does Shelly Katz receive? Note: Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent. Proceeds received
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