Answer the following questions regarding a four-month promissory note for $1,850 issued June 1, 2021,and bearing an interest rate of 5% p.a.a) What was the maturity date of the note?b) How much was the note worth at maturity?c) How much was the note traded for on Sep 1, 2021, if money was worth 6% p.a.?

A promissory note is a financial instrument that is used for the payment of a loan at a future date.…

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Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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3. Assume the following information regarding a note received by LENDYOU Company: January 1, 2020 6 months Date of note Term of note Interest rate 12% Date of discounting Discount rate March 1, 2020 15% Accrued interest on note P15,000 How much is the carrying amount of the note receivable on March 1, 2020?
K Bethany Realty loaned money and received the following notes during 2024. (Click the icon to view the notes received.) Read the requirements. Requirement 1. Determine the maturity date and maturity value of each note. (For each applicable note, compute interest using a 365-day year. Round to the nearest dollar.) Note Note (1) Note (2) Note (3) Jun. 19 Date Principal Amount Interest Rate Term Due date Month/Day Year Apr. 1 Sep. 30 $ 18,000 8% 1 year 24,000 12% 6 months 20,000 9% 180 days Data table Principal Note Date Amount Interest Rate Term Note (1) Note (2) Note (3) Jun. 19 Apr. 1 Sep. 30 $ 18,000 8% 1 year 24,000 12% 6 months 20,000 9% 180 days Print Done - ☑ Question Viewer
A promissory note has a face value of 22275.00 and it has a date of issue of November 15 this year. The maturity date is April 15th. The rate of simple interest is 5.75%. What is the maturity value of the note?
What is the interest income for 2022? Based on preceding data, what is the carrying value of the note receivable on December 31, 2022?
A promissory note with a face value of $12,300 is written on February 22, 2015 and is due on June 03, 2022; it bears an interest rate of 11.5% compounded quarterly. The note is sold on January 04, 2021 to a bank that discounts notes at a compound interest rate of 4.5% compounded quarterly. Determine the maturity value of the note. Include a time diagram. Determine the amount that the bank paid for the note. Include a time diagram.
On December 31, 2022, the lender on a $5,400, 120-day, 12% note dated November 5, 2022, will recognize : A) interest receivable, $213 B) interest payable, $99 C) interest payable, $213 D) interest receivable, $99
How do I find the maturity value and maturity date of an interest-bearing promissory note that has a face value of $1,270? Interest rate percent of 7.1 and term of note 130 days?
Frame company has an 8% note receivable dated June 30, 2021, in the original amount of P1,500,000. Payments of P500,000 in principal plus accrued interest are due annually on July 1, 2022, 2023 and 2024. What is the balance of note receivable on July 1, 2022?On june 30,2023, what amount should be reported as accrued interest receivable on the note receivable?
MCM Company issued a note receivable to a customer on September 1, 2020. The face value of the note was $20,000 at 5% interest for 7 months. What would be included in the journal entry on March 30, 2021? A credit to Interest Income for $250.00 A debit to Interest Income for $583.33 A credit to Interest Receivable for $250.00 A debit to Interest Receivable for $583.33
Problem: ABC Company issued a promissory note to RCBC Bank. Details from the promissory note are as follows: Date of note: November 1, 2020 Term of note: 180 days Principal: P120,000 Interest rate: 12% Determine the following: 1. What is the account to be credited on the adjusting entry on December 31, 2020? 2. How much is the amount to be credited on December 31, 2020? 3. How much is the total interest expense for the full term of the note.
2. On July 1, 2019, XYZ Co. borrowed P2,000,000 and Issued a one-year promissory note. The lender discounted the note at 12%. (a) Give the journal entries on July 1, 2019, December 31, 2019 to accrue interest on the note and July 1, 2020, upon maturity of the note. (b) What is the carrying amount of the note payable as of July 1, 2019 and December 31, 2019. Show them in good form. *
Florenda Quino Forwarders borrowed P600,000 from the bank on Sept. 1, 2019. The note carried an 8% annual rate of interest and was set to mature on Feb. 29, 2020. Interest and principal were paid in cash on the maturity date. Required: 1. What was the amount of interest expense paid in cash in 2019? 2. What was the amount of interest expense recognized on the 2019 income statement? 3. What was the amount of total liabilities shown on the 2019 balance sheet? 4. What was the total amount of cash that was paid to the bank on Feb. 29, 2020 for principal and interest? 5. What was the amount of interest expense shown on the 2020 income statement?

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