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Required information [The following information applies to the questions displayed below.] On April 15, 2019, Powell Inc. obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $169,900. The interest rate charged by the bank was 8.50%. The bank made the loan on a discount basis. Required: a-1. Calculate the loan proceeds made available to Powell.

Required information [The following information applies to the questions displayed below.] On April 15, 2019, Powell Inc. obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $169,900. The interest rate charged by the bank was 8.50%. The bank made the loan on a discount basis. Required: a-1. Calculate the loan proceeds made available to Powell.

FINANCIAL ACCOUNTING
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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Required information [The following information applies to the questions displayed below.] On April 15, 2019, Powell Inc. obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $169,900. The interest rate charged by the bank was 8.50%. The bank made the loan on a discount basis. Required: a-1. Calculate the loan proceeds made available to Powell. Loan proceeds
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] On April 15, 2019, Powell Inc. obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $169,900. The interest rate charged by the bank was 8.50%. The bank made the loan on a discount basis. Required: a-1. Calculate the loan proceeds made available to Powell. Loan proceeds
On April 15, 2019, Powell Inc. obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $169,900. The interest rate charged by the bank was 8.50%. The bank made the loan on a discount basis. a-3. Record the journal entry to show the effect of signing the note and the receipt of the cash proceeds on April 15, 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list ed Journal entry worksheet ok nt 1 sint Record the proceeds of a short-term note payable (discount basis). rences Note: Enter debits before credits. Date General Journal Debit Credit April 15, 2019
Transcribed Image Text:On April 15, 2019, Powell Inc. obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $169,900. The interest rate charged by the bank was 8.50%. The bank made the loan on a discount basis. a-3. Record the journal entry to show the effect of signing the note and the receipt of the cash proceeds on April 15, 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list ed Journal entry worksheet ok nt 1 sint Record the proceeds of a short-term note payable (discount basis). rences Note: Enter debits before credits. Date General Journal Debit Credit April 15, 2019
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