Maturity Value (in $) Date of Maturity Face Value Term of Note (days) Interest Rate (%) Note Date $1,280 Sept. 13 130 Selectv 7.9 Discount Proceeds Date of Discount Discount Period (days) (in $) Rate (%) Dec. 6 11.3

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter6: Receivables And Inventories
Section: Chapter Questions
Problem 6.2MBA: Allowance method Using transactions listed in £6-S. indicate the effects of each transaction on the...
icon
Related questions
Question
100%
The following interest-bearing promissory note was discounted at a bank by the payee before maturity. Use the ordinary interest method, 360 days, to calculate the missing information. (Round dollars to the nearest cent.)
Maturity
Date of
Note
Maturity
Date
Face
Interest
Term of
Value
Value
Rate (%)
Note (days)
(in $)
$1,280
7.9
Sept. 13
130
Select- v
Discount
Proceeds
Date of
Discount
Discount
Period (days)
Rate (%)
(in $)
Dec. 6
11.3
Transcribed Image Text:Maturity Date of Note Maturity Date Face Interest Term of Value Value Rate (%) Note (days) (in $) $1,280 7.9 Sept. 13 130 Select- v Discount Proceeds Date of Discount Discount Period (days) Rate (%) (in $) Dec. 6 11.3
Expert Solution
Step 1

Given:

 

Face value = $1280

Days of note = 130

Interest rate = 7.9%

 

trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

Blurred answer
Knowledge Booster
Accounting for Notes
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning