b. DIStinguisnUe The following transactions were completed by Austin Ltd over a 3-month period: Nov 10: Received from G. R. Jackman, a customer, a Tk. 4,000, 60-day, 9% note dated Nov Nov 11: Received from Leshner on account, a Tk. 1,800, 60-day, 12% note dated Nov.10. Nov 20: Discounted Leshner'S note at the bank at 10%. Nov 24: Discounted Jackman's note at the bank at 10%. C. Dec. 3: Received a Tk. 2950, 30-day, non-interest bearing note darted Dec. 1 from Prado, crediting Parado's account at face value. Dec. 7: Discounted Parado's note at the bank at 9%. Dec. 29: Received from Averett, a Tk.500, 90-days, 12% note dated Dec.14 and made by B. Realty Inc. gave the customer credit for the maturity value of the note less discount at 10%. Dec. 29: Received a Tk. 3,500, 10-day, 7% note dated December 29 from S. Sulivan, a customer. Jan 10: Received notice from the bank that Jackman's note was not paid at maturity. A protest fee of Tk.15 was charged by the bank. Jan 22: Received a Tk.15,000, 120-day, 9% note dated January 22 from Thorgood, a customer. Jan 28: Received payment on Sulivan's note, including interest at 10% on the face value from the maturity date. Prepare journa! entries in the books of Austin Ltd.

b. DIStinguisnUe The following transactions were completed by Austin Ltd over a 3-month period: Nov 10: Received from G. R. Jackman, a customer, a Tk. 4,000, 60-day, 9% note dated Nov Nov 11: Received from Leshner on account, a Tk. 1,800, 60-day, 12% note dated Nov.10. Nov 20: Discounted Leshner'S note at the bank at 10%. Nov 24: Discounted Jackman's note at the bank at 10%. C. Dec. 3: Received a Tk. 2950, 30-day, non-interest bearing note darted Dec. 1 from Prado, crediting Parado's account at face value. Dec. 7: Discounted Parado's note at the bank at 9%. Dec. 29: Received from Averett, a Tk.500, 90-days, 12% note dated Dec.14 and made by B. Realty Inc. gave the customer credit for the maturity value of the note less discount at 10%. Dec. 29: Received a Tk. 3,500, 10-day, 7% note dated December 29 from S. Sulivan, a customer. Jan 10: Received notice from the bank that Jackman's note was not paid at maturity. A protest fee of Tk.15 was charged by the bank. Jan 22: Received a Tk.15,000, 120-day, 9% note dated January 22 from Thorgood, a customer. Jan 28: Received payment on Sulivan's note, including interest at 10% on the face value from the maturity date. Prepare journa! entries in the books of Austin Ltd.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 3CE

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C company discounted its own 250,000 one year note at a bank, at a discount rate of 12% when the prime rate was 10%. In reporting the note in the Statement of Financial Position prior to maturity, 1.what rate should C company use for the recording of interest expense? 2. The journal entry to record the transaction will include a a. Debit to Cash for 250,000 b. Debit to Cash for 220,000 c. Debit to discount on notes payable, 40,000 d. Credit to notes payable, 220,000
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