The notes receivable account of Caimito, Inc. consisted of the following: 1. 60-day note of P10,000 dated May 15 with a 9% interest rate, discounted at the bank on June 8 at 12%. 2. 120-day note of P100,000 (face amount) dated October 1 with no stated interest rate and a market rate of 9% interest, discounted at the bank on November 30 at 12%. This note was received from the sale of equipment. The proceeds from discounting of the 60-day note amount to: A. 10,150 B. 10,000 C. 10,028 D. 10,059
The notes receivable account of Caimito, Inc. consisted of the following: 1. 60-day note of P10,000 dated May 15 with a 9% interest rate, discounted at the bank on June 8 at 12%. 2. 120-day note of P100,000 (face amount) dated October 1 with no stated interest rate and a market rate of 9% interest, discounted at the bank on November 30 at 12%. This note was received from the sale of equipment. The proceeds from discounting of the 60-day note amount to: A. 10,150 B. 10,000 C. 10,028 D. 10,059
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The notes receivable account of Caimito, Inc. consisted of the following:
1. 60-day note of P10,000 dated May 15 with a 9% interest rate, discounted at the bank on June 8 at 12%.
2. 120-day note of P100,000 (face amount) dated October 1 with no stated interest rate and a market rate of 9% interest, discounted at the bank on November 30 at 12%. This note was received from the sale of equipment.
The proceeds from discounting of the 60-day note amount to:
A. 10,150
B. 10,000
C. 10,028
D. 10,059
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