None Rex Corporation accepted a $4,000, 6%, 120-day note dated August 8 from Regis Company in settlement of a past bill. On October 11,Rex discounted the note at Park Bank at 7%. (Use Days in a year table.)a. What is the note's maturity value?Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.Maturity valueb. What is the discount period?Discount perioddays

Discounting a note payable with a bank is a process by which a borrower sells a promissory note to…

on accepted a $4,000, 6%, 120-day note dated August 8 from Regis Company in settlement of a past bill. On October ed the note at Park Bank at 7%. (Use Days in a year table.) e note's maturity value? - 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent. alue

on accepted a $4,000, 6%, 120-day note dated August 8 from Regis Company in settlement of a past bill. On October ed the note at Park Bank at 7%. (Use Days in a year table.) e note's maturity value? - 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent. alue

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterD: Notes Payable And Notes Receivable

Section: Chapter Questions

Problem 2P

See similar textbooks

Similar questions

A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
Rex Corporation accepted a $3,500, 5%, 120-day note dated August 8 from Regis Company in settlement of a past bill. On October 11, Rex discounted the note at Park Bank at 6%. (Use Days in a year table.) a. What is the note's maturity value? (Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.) Maturity value b. What is the discount period? Discount period days c. What is the bank discount? (Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.) Bank discount d. What proceeds does Rex receive? (Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.) Proceeds received
Rex Corporation accepted a $4,000, 6%, 120-day note dated August 8 from Regis Company in settlement of a past bill. On October 11, Rex discounted the note at Park Bank at 7%. (Use Days in a year table.) a. What is the note's maturity value? Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent. Maturity value b. What is the discount period? Discount period c. What is the bank discount? Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent. Bank discount days d. What proceeds does Rex receive? Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent. Proceeds received
Rex Corporation accepted a $6,500, 10%, 120-day note dated August 8 from Regis Company in settlement of a past bill. On October 11: Rex discounted the note at Park Bank at 11%. (Use Days in a year table.) a. What is the note's maturity value? Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent. Maturity value b. What is the discount period? Discount period days c. What is the bank discount? Note: Use 360 days a year. Do not round intermediate calculations, Round your final answer to the nearest cent. Bank discount
Bull City Industries is considering issuing a $100,000, 7% note to a creditor on account. Assume a 360-day year. For a compound transaction, if an amount box does not require an entry, leave it blank. a. If the note is issued with a 45-day term, journalize the entries to record: the issuance of the note. the payment of the note at maturity. b. If the note is issued with a 90-day term, journalize the entries to record: the issuance of the note. the payment of the note at maturity.
Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 10%. Use the ordinary interest method. (Use Days in a year table.) (Use 360 days a year. Do not round intermediate calculations. Round your final answers to the nearest cent.) Face value (principal) $ 54,900 Rate of interest 8% Length of note 90 days Maturity value 55555 Date of note November 12 Date note discounted December 8 Discount period days Bank discount Proceeds
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.) Note: Use 360 days a year. Do not round intermediate calculations. Round your final answers to the nearest cent. Face value (principal) Rate of interest Length of note $ 25,000 9% 60 days Maturity value Date of note June 8 Date note discounted July 10 Discount period Bank discount
Bull City Industries is considering issuing a $100,000, 7% note to a creditor on account. Required: a. If the note is issued with a 45-day term, journalize the entries to record (refer to the company's Chart of Accounts for exact wording of account titles): 1. the issuance of the note. 2. the payment of the note at maturity. Assume a 360-day year. b. If the note is issued with a 90-day term, journalize the entries to record (refer to the company's Chart of Accounts for exact wording of account titles): 1. the issuance of the note. 2. the payment of the payment of the note at maturity. Assume a 360-day year.
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.) Note: Do not round intermediate calculations. Round your final answers to the nearest cent. $ Face value (principal) 27,200 Rate of interest 9% Length of note 60 days Maturity value Date of note August 23 Date note discounted September 18 Discount period Bank discount Proceeds eck
Linstrum Company received a 60-day, 6% note for $28,000, dated July 23, from a customer on account. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. Assume 360 days in a year. Do not round your intermediate calculations and round your final answer to the nearest dollar. c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Use the ordinary interest method, 360 days, to solve the following word problem. Round to the nearest cent when necessary. Roni Lockard signed a $28,500 simple discount promissory note at a certain bank. The discount rate was 13%, and the note was made on February 11 (not in a leap-year) for 119 days. (a) What proceeds (in $) willI Roni receive on the note? $ (b) What is the maturity date of the note? June 10
Use the ordinary interest method, 360 days, to solve the following word problem. Round to the nearest cent when necessary. Roni Lockard signed a $27,500 simple discount promissory note at a certain bank. The discount rate was 14%, and the note was made on February 11 (not in a leap-year) for 118 days. (a) What proceeds (in $) will Roni receive on the note? $ (b) What is the maturity date of the note?