Proceeds from Notes Payable On January 26, Nova Co. borrowed cash from Conrad Bank by issuing a 60-day note with a face amount of $37,200. Assume a 360-day ye a. Determine the proceeds of the note, assuming the note carries an interest rate of 10%, $ b. Determine the proceeds of the note, assuming the note is discounted at 10%.

Subject:- accounting

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.)

On June 43, Trade Bank loaned a customer $30,000 on a 60-day, 10% note, temiting the face value less the interest to the customer. Which of the following journal entries would Trade Bank use to record the receipt of the note? a. Notes Receivable                      30,000              Interest revenue                                     3,000              Cash                                                       27,000 b. Notes receivable                       30,000             Cash                                                         30,000 c. Notes Receivable                       29,500             Cash                                                         29,500 d. Notes receivable                       30,000             Interest revenue                                       500             Cash                                                         29,500

West County Bank agrees to lend Wildhorse Co. $472000 on January 1. Wildhorse Co. signs a $472000, 6%, 6-month note. What entry will Wildhorse Co. make to pay off the note and interest at maturity assuming that interest has been accrued to June 30? Notes Payable 486160        Cash   486160 Interest Payable 7080   Notes Payable 472000   Interest Expense 7080        Cash   486160 Notes Payable 472000   Interest Payable 14160        Cash   486160 Interest Expense 14160   Notes Payable 472000        Cash   486160

Note Receivable Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9 from a customer on account. Assume 360 days in a year. a. Determine the due date of the note. b. Determine the maturity value of the note. $ Feedback Check My Work The due date is the date the note is to be paid. Assume a 360 day year. The maturity value is the amount that must be paid at the due date of the note. c. Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank. Aug. 7 Feedback Check My Work At the due date, the company records the receipt of payment on the note.

On April 1, Year 1, Halo Co. issued a $5,000 face value discount note to the Capri Bank. The note had a 12 percent discount rate and a one-year term. 8.     The amount of cash Halo received on April 1, Year 1, was a.     $5,000. b.     $4,250. c.     $4,400. d.     $5,500. 9.     The total carrying value of Halo’s liabilities on December 31, Year 1, would be a.     $5,600. b.     $5,000. c.     $5,450. d.     $4,850. 10. If Halo Co. earned $2,000 of revenue in Year 1, the amount of net income would be a.     $2,000. b.     $1,550. c.     $1,400. d.     $1,850.

On January 1, $50,000 cash is borrowed from a bank in return for a 6% installment note with 24 monthly payments of $2,216 each. 1. Prepare the journal entry to record the issuance of the note.2. Prepare the journal entry to record the first monthly interest payment.

Subject: accounting

On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a 90-day note with a face amount of $64,800. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of 9%.  b. Determine the proceeds of the note, assuming the note is discounted at 9%.