Please provide answer in text (Without image) Proceeds from Notes PayableOn January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a 60-day note with aface amount of $42,000. Assume a 360-day year.a. Determine the proceeds of the note, assuming the note carries an interest rate of 10%.Xb. Determine the proceeds of the note, assuming the note is discounted at 10%.|xFeedbackCheck My WorkThe proceeds equal the cash initially received. Proceeds represents how much in valuethe borrower is walking away with in cash or merchandise.

Lets understand the basics.Proceeds from note is equal to all the cash received initially from…

Proceeds from Notes Payable On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a 60-day note Face amount of $42,000. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of X

Proceeds from Notes Payable On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a 60-day note Face amount of $42,000. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Proceeds from Notes Payable
On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a 60-day note with a
face amount of $42,000. Assume a 360-day year.
a. Determine the proceeds of the note, assuming the note carries an interest rate of 10%.
X
b. Determine the proceeds of the note, assuming the note is discounted at 10%.
|x
Feedback
Check My Work
The proceeds equal the cash initially received. Proceeds represents how much in value
the borrower is walking away with in cash or merchandise.

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