Notes Receivable BTS Publishing received a P70,000 promissory note at 12% 60 days from one of its customers. After 20 days, BTS discounted the note at the BP Commerce at a discount rate of 14.5%. The note was made on March 21. Provide the needed information and show computations. 1. What is the maturity value of the note? 2. What bank discount of discounting of the note? 3. What is the proceeds will BTS received after the discounting of note?

Notes Receivable BTS Publishing received a P70,000 promissory note at 12% 60 days from one of its customers. After 20 days, BTS discounted the note at the BP Commerce at a discount rate of 14.5%. The note was made on March 21. Provide the needed information and show computations. 1. What is the maturity value of the note? 2. What bank discount of discounting of the note? 3. What is the proceeds will BTS received after the discounting of note?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Shelley Corporation discounted a $7,000, 90-day note dated June 18 at the Sunshine Bank on July 18 at a discount rate of 12%. (Assume the $7,000 is the maturity value.) The amount of bank discount is: Multiple Choice $6,790 $210 $140
Check my wor Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 9%. Use the ordinary interest method. (Use Days in a year table.) (Do not round intermediate calculations. Round your final answers to the nearest cent.) Face value Rate of Length of note Date note (principal) $26, 300 interest Maturity value Date of note discounted 9% 65 days Discount period Bank discount Proceeds March 17 April 20 days 24 $4 hp
Assuming a 360-day year, proceeds of $46,510 were received from discounting a $47,941, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was a.13.18% b.13.69% c.9.94% d.11.94%
Assume that part of accounts and other receivables on Thompson Toys' February 2, 2010, balance sheet is comprised of $43,225,000 of notes receivable. Two notes make up the amount. The first note has a face value of $30,000,000 and bears interest at 7 percent for 90 days. The second note has a face value of $13,225,000 and bears interest at 9 percent for 120 days. Record the journal entry for the collection of the 7 percent note on May 3 and the dishonor of the 9 percent note on June 2. (Omit explanations; assume no interest had been accrued; amounts rounded to nearest dollar.)
If you sign a discount note for $7,500 at a bank discount rate of 5% for 3 months, what is the effective interest rate? Round to the nearest tenth percent. Step 1 The effective interest rate is the actual interest rate charged on a discounted note and takes into account the fact that the borrower does not receive the full amount of the principal. It is calculated using the bank discount, the proceeds, and time. The bank discount is calculated as follows where the discount rate is given as a decimal and the time will be a fraction whose numerator is the given amount of time in months and denominator is 12 months. bank discount = face value ✕ discount rate ✕ time The rate was given to be 5%. As a decimal, we have . Calculate the bank discount (in $) for the $7,500 promissory note at a discount of 5% for 3 months. bank discount = face value ✕ discount rate ✕ amount of time in months 12 months = $7,500 ✕ ✕ 3 12 = $
A bank charges 10% bank discount on short-term loans. Find the maturity value of the non-interest bearing note given by the bank, if the borrower receives Php 3,000 from July 5 to September 19, 2012. Select the correct response: Php 3,305.32 Php 3,490.89 Php 1,616.28 Php 3,064.70
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.) Face Value Interest Rate (%) Date of Note Term of Note (days) Maturity Date Maturity Value (in $) $750 141 June 9 135 ---Select--- * $ 794.96 2 Date of Discount Discount Period (days) Sept. 5 × Discount Rate (%) 15.5 $ tA Proceeds (in $)
A bank bill with a face value of $100,000 was issued today and it matures in 60 days' time. If interest rates are 6% p.a. what amount of interest is earned if the bill is held until maturity? a. $99,023.33 b. $1,457.88 C. $976.67 Od. $6,000.00 Oe. $78,260.87
A $7,000, 4%, 120-day note dated March 20 is discounted on July 15. Assuming a 3% discount rate, the bank discount is: Multiple Choice $1.74 $1.77 $93.33 $70.00
Please solve all the MCQ with detailed answer for both correct and incorrect answers
A note with a face value of BD 2,600 will mature after 3 Years from today is sold to a bank that uses a 6% annual compound interest rate. The bank deducted BD15 as a commission and BD72 as a collection charge. Find the net present value and total discounts.
American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 17.25%, with interest paid monthly, what is the card's EFF%? Select the correct answer. a. 18.68% b. 12.88% c. 9.98% d. 24.48% e. 15.78%