On September 1, Rongo Co. issued a 45-day note with a face amount of $80,000 to Simone Co. for merchandise inventory. a. Determine the proceeds of the note, assuming the note carries an interest rate of 8%. b. Determine the proceeds of the note, assuming the note is discounted at 8%.

On September 1, Rongo Co. issued a 45-day note with a face amount of $80,000 to Simone Co. for merchandise inventory. a. Determine the proceeds of the note, assuming the note carries an interest rate of 8%. b. Determine the proceeds of the note, assuming 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....

See similar textbooks

Related questions

Q: Solve this one not use ai

A: Step 1: Define InventoryIn accounting, inventory is an asset that a business holds on its balance…

Q: Hello tutor give true calculation of finance question

A: Step 1: Define Coupon PaymentA coupon payment is similar to a fixed-interest income and shares the…

Q: Solve this one

A: Step 1: Define Owner's EquityOwner's equity is the value of the company that is claimed by the owner…

Q: Question 1 One of Pacific's construction workers informed management on January 5, 2009, through his…

A: 1.In this case, as of December 31, 2008, Pacific was unaware of the injury, so no liability was…

Q: A cash register tape shows cash sales of $1300 and HST of $195. The journal entry to record this…

A: In this scenario, the business has made cash sales of $1300. On top of this, there is a Harmonized…

Q: hsl

A: To determine the maintained markup percentage for Elise's sales of the FUNWEAR prewashed jeans,…

Q: Answer please help

A: Explanation of Beginning Inventory: The beginning inventory refers to the stock of goods available…

Q: Please help me solve this accounting question

A: 1. Tables Chairs Sales Price 1,200.00 100.00 Variable manufacturing costs (768.00)…

Q: General Accounting

A: Tax equivalent yield of municipal Bond=current Municipal yield/(1-tax rate) 1. We will calculate the…

Q: Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have…

A: Steps to Solve the Problem: A) Anticipated Level of Profits for the Expected Sales VolumesStep 1:…

Q: RMN

A: Requirement a:The number of units of work in process inventory at the end of August will be computed…

Q: General Accounting

A: 1. Calculate total revenue:Base case sales: 13,000 unitsBase case sale price: $13.00/unitTotal…

Q: ABC Company produces widgets with a standard cost of $10 per unit. During the month, they produced…

A: Explanation of Standard Cost: The standard cost is a pre-determined cost assigned to each unit of…

Q: Total cost per unit?

A: Explanation of Total Variable Cost: Total Variable Cost refers to the cost that changes directly…

Q: Need answer please

A: Steps to Calculate Operating IncomeStep 1: Calculate COGS (Cost of Goods Sold):• COGS = Beginning…

Q: Don't use Ai and chatgpt. Answer in step by step with explanation. Don't upload image.

A: Step 1:The sales return is the return of inventory by the buyer to the seller, the buyer return the…

Q: Answer in step by step with explanation. Don't use Ai and chatgpt.

A: Explanation: As per Statement of Retained Earnings:Ending balance of Retained earnings = Beginning…

Q: Accounting records indicate certain balances in the inventory accounts for 20xx. Calculate the…

A: Step 1: Define Manufacturing Overhead CostsThe manufacturing overhead costs examples are indirect…

Q: Can you please solve this general accounting question ?

A: Step 1: Record the initial investment of $5,000 from shareholders (Cash)Step 2: Record the $2,000…

Q: Please solve

A: To help Newman create a fund that will allow him to withdraw $24,390 annually for four years (from…

Q: General Accounting question please give answer

A: Step 1: Introduction to the Cost-Volume-Profit (CVP) AnalysisThe CVP analysis is used to compute the…

Q: Nkj

A: Step 1:There are two methods of cash flow statement Direct method Indirect method Cash flow…

Q: Financial Accounting

A: Step 1: Introduction to cost of productThe cost of a product refers to the total amount of expenses…

Q: PT. PERMATASARI is a metal and wood cutting company, which sells its products to companies that…

A: Cost of Goods Sold (COGS) statement for PT. Permatasari for 2022, we can follow these…

Q: First Quarter Griffin Corporation prepared the following two income statements (simplified for…

A: 1. The error did not have any effect on the combined pretax income because the transaction corrected…

Q: None

A: The problem requires the determination of the asset turnover. Asset turnover is the ratio of total…

Q: Which of the following describes the statement of cash flows? a) It shows a company's financial…

A: Explanation of Statement of Cash Flows:The Statement of Cash Flows is a financial report that…

Q: HSL

A: Step 1:Calculate the number of shares for the stock dividendStep 2:Journal entry to record the…

Q: Provide correct answer

A: Step 1 For simple interest The formula for simple interest is:A=P(1+rt)Where:A is the amount of…

Q: On 1 January 2024, Pelican Inc. provided services to Eagle Co. in exchange for Eagle’s $300,000,…

A: To analyze the financial implications of the note provided by Eagle Co. to Pelican Inc., we need to…

Q: Hello tutor answer this accounting question

A: Step 1: Define Manufacturing CostIn cost accounting, manufacturing costs are considered to be the…

Q: Exercise 4-8 (Algo) Discontinued operations; disposal in subsequent year [LO4-4] Kandon Enterprises,…

A: a. KANDON ENTERPRISES, INC. Partial Income Statement For the Year Ended…

Q: Some firms do not think they need to invest time and resources in data analytics because they…

A: Step 1: Businesses may fail to see the additional advantages of data analytics if they think their…

Q: Give answer please

A: Explanation of Debit: In accounting, a debit is an entry made on the left side of an account ledger.…

Q: General Accounting Question Solution

A: Step 1: The Manufacturing Overhead rate is the rate at which overhead is applied to the process. It…

Q: How much external equity must delta raise?

A: To calculate how much external equity Delta must raise, follow these steps:Total Dividends Paid:…

Q: The operating cycle is typically defined as the time it requires to convert cash to inventory to…

A: Step 1:Operating cycle is the company's operations length. In this cycle company is having cash…

Q: Which of the following considered a nominal account? a) Inventory b) Cash c) Rent Expense d)…

A: Explanation of Nominal Accounts: Nominal accounts are temporary accounts used to record financial…

Q: Need help please

A: I hope this helps.

Q: Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had…

A: a) Calculate Roquan's deduction for qualified business income Assuming this is year 2023, and Roquan…

Q: General Accounting

A: Part A: Calculate ROE (Return on Stockholders' Equity)Step 1: Calculate Net Income• Net Income =…

Q: Identify the differences between paper-based and digital evidence. Do you believe that digital…

A: Paper-based evidence refers to physical documents such as invoices, receipts, contracts, and…

Q: Need experts solution only, Don't use AI.

A: alculation of Part(a)Calculation of Annual Cash EarningsParticularsAmount ($)Total Net Cash Earnings…

Q: How much capital is raised?

A: The question asks how much capital is raised by issuing 1,000 bonds, each with a par value of $100.…

Q: How much pays off the principal??

A: If you have any problem let me know in comment section.

Q: Not use ai please don't

A: b.) Retention Ratio (RR) = 1 - Dividend Payout Ratio = 1 - .25 = .75 Sustainable Growth Rate = (ROE…

Q: Comprehensive Insurance Company has two product lines: health insurance and auto insurance. The two…

A: Step by Step Explanation: To address the problem, we are required to allocate the support…

Q: Select all that apply Which of the following will cause differences between the bank statement…

A: Correct optionsa. Errors - Yes: Errors in recording transactions either in the bank's records or…

Q: A1 Consulting Corporation experienced a fire on December 31, 2025, in which its financial records…

A: a) Cost of Goods SoldFirst, we need to compute the average inventory. Add the beginning and ending…

Q: On November 16, Year 1, Clear Glass Company borrowed $20,000 from First American Bank by issuing a…

A: 3. Effective interest rate formula = (Interest cost/usable loan amount)*(number of days in a…

Question

Hi expart Provide answer not use ai

On September 1, Rongo Co. issued a 45-day note with a face amount of
$80,000 to Simone Co. for merchandise inventory.
a. Determine the proceeds of the note, assuming the note carries an interest
rate of 8%.
b. Determine the proceeds of the note, assuming the note is discounted at 8%.

Definition Definition Structural system an enterprise uses to collect, store, report, retrieve, and process financial data. Accounting information systems are used by business analysts, auditors, accountants, and consultants for accurate and efficient access to financial data.

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
Rain T-Shirts issued a $440,600 note on January 1, 2018 to a customer, Larry Potts, in exchange for merchandise. The merchandise had a cost to Rain T-Shirts of $220,300. The terms of the note are 24-month maturity date on December 31, 2019 at a 4.5% annual interest rate. Larry Potts does not pay on his account and dishonors the note. Record journal entries for Rain T-Shirts for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
On August 1, Batson Company issued a 60-day note with a face amount of $85,200 to Jergens Company for merchandise inventory. (Assume a 360-day year is used for interest computations.) a. Determine the proceeds of the note assuming the note carries an interest rate of 12%. $ b. Determine the proceeds of the note assuming the note is discounted at 12%.
On August 1, Batson Company issued a 60-day note with a face amount of $47,400 to Jergens Company for merchandise inventory. (Assume a 360-day year is used for interest calculations.) a. Determine the proceeds of the note assuming the note carries an interest rate of 12%.fill in the blank 1 b. Determine the proceeds of the note assuming the note is discounted at 12%.fill in the blank 2
On August 1, Batson Company issued a 60-day note with a face amount of $140,000 to Jergens Company for merchandise inventory. (Assume a 360-day year is used for interest computations.) a. Determine the proceeds of the note assuming the note carries an interest rate of 6%. $fill in the blank 1 b. Determine the proceeds of the note assuming the note is discounted at 6%.
On February 1, Electronic Warehouse Co. issued a 45-day note with a face amount of $80,000 to Yamura Products Co. for cash. a. Determine the proceeds of the note, assuming the note carries an interest rate of 10%. b. Determine the proceeds of the note, assuming the note is discounted at 10%.
Ramsey Company issues an $800,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 7%.a. Journalize Ramsey’s entries to record:1. the issuance of the note.2. the payment of the note at maturity.b. Journalize Buckner’s entries to record:1. the receipt of the note.2. the receipt of the payment of the note at maturity.
Roberti Company paid Hoffman Company for merchandise with a $8,000, 60-day, 9% note dated April 1. If Roberti Company pays the note at maturity, what entry should Hoffman make at that time? Select one: OA. Cash OB. Notes payable Interest expense Cash Cash Interest income Notes receivable O D. Interest income Notes receivable Notes payable Interest expense Cash 8,720 8,000 720 8,120 7,880 120 720 8,000 8,720 120 8,000 8,000
On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $20,000 face value and 6% interest. On October 30, the journal entry for the collection of the note, assuming a 360-day year, should include a a.credit to Interest Revenue for $300 b.credit to Notes Receivable for $20,300 c.debit to Interest Receivable for $300 d.debit to Notes Receivable for $20,000
The following note transactions occurred during the year for Towell Company:On Nov. 25, Towell issued a 90-day, 9%, note payable for $40,000 to Hyatt Company for merchandise.On Dec. 7, Towell signed a 120-day, $60,000 note with the bank at 10%.On Dec 22, Towell gave Barr, Inc. a $12,000, 10%, 60-day note in payment of its account.Calculate the amount of the necessary interest accrual for each note payable at December 31.(Round to nearest whole dollar.) Lender Interest accrual Hyatt Company note Bank note Barr, Inc. note