Rex Corporation accepted a $8,000, 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. Answer is complete but not entirely correct. Maturity value b. What is the discount period? C. What is the bank discount? D. What proceeds does Rex receive?

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
icon
Related questions
Question
None
Rex Corporation accepted a $8,000, 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. Answer is complete but not entirely correct. Maturity value b. What is
the discount period? C. What is the bank discount? D. What proceeds does Rex receive?
Transcribed Image Text:Rex Corporation accepted a $8,000, 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. Answer is complete but not entirely correct. Maturity value b. What is the discount period? C. What is the bank discount? D. What proceeds does Rex receive?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub