Face value(principal)$TABLE 7-150,400Day ofmonth1234Rate ofinterest5678910111213141516171819202122232526272829303131Jan.9%12345678910111213141516171819202122232425262728293031Exact days-in-a-year calendar (excluding leap year)"Length ofnote90 days28Feb.3233343536373839404142434445464748495051525354555657585931Mar.6061626364656667686970717273747576777879808182838485868788899030Apr.Maturityvalue91929394959697989910010110210310410510610710810911011111211311411511611711811912031May12112212312412512612712812913013113213313413513613713813914014114214314414514614714814915015130313130June July Aug. Sept.152153154155156157158159160161162163164165166167168169170171172173174175176177178179180181182183184185186187188Date ofnoteJanuary 12189190191192193194195196197198199200201202203204205206207208209210211212213214215216217218219220221222223224225226227228229230231232233234235236237238239240241242243244245246247Date notediscountedFebruary 324824925025125225325425525625725825926026126226326426526626726826927027127227331Oct.274275276277278279280281282283284285286287288289290291292293294295Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 8%. Use the ordinary interest.method. (Use Days in a year table.) (Do not round intermediate calculations. Round your final answers to the nearest cent.)29629729829930030130230330430Nov.Discount period68 days30530630730830931031131231331431531631731831932032132232332432532632732832933033133233333431Dec.335336337338339340341342343344345346347348349350351352353354355356357358359360361362363364365Bank discountProceeds

A financial security with a note has a shorter maturity time than a year. A brand-new,…

Answered: Solve for maturity value, discount…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Amortize Discount by Interest Method On the first day of its fiscal year, Ebert Company issued $23,000,000 of 5-year, 10% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 12%, resulting in Ebert receiving cash of $21,307,304. The company uses the interest method. a. Journalize the entries to record the following: 1. Sale of the bonds. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Cash 21,307,304 Discount on Bonds Payable 1,692,696 Bonds Payable v 23,000,000 Feedback Check My Work 2. First semiannual interest payment, including amortization of discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense v Discount on Bonds Payable v Cash v Feedback Check My Work
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 $)
25. 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.) FaceValue InterestRate (%) Date ofNote Term ofNote (days) MaturityDate MaturityValue(in $) $2,200 12 Mar. 7 80 $ Date ofDiscount DiscountPeriod (days) DiscountRate (%) Proceeds(in $) Apr. 15 19 $
Compute bank discount using (A) ordinary interest, (B) proceeds, and (C) effective interest rate to nearest hundredth. Do not round denominator in your calculation. Face Value Discount Rate Time in Days $12,000 13% 120
Determine the annual financing cost of a 1-year (365 day), $9,000 discounted bank loan at a stated annual interest rate of 10.0 percent. Assume that no compensating balance is required. Round your answer to two decimal places. %
Check my Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 7%. Use the ordinary interest method. (Use Days in.a year table) (Do not round Intermediate calculations. Round your final answers to the nearest cent.) Maturity value Date of Rate of Interest Length of note Date note discounted Proceede Face value (principal) 60,600 Discount perlod Bank discount note 90 days May 13 |days June 4
Using ordinary interest, 360 days, calculate the missing information for the simple discount note. (Round dollars to the nearest cent.) Face Discount Value Rate (%) Date of Note Term (days) Maturity Date Bank Discount (in $) Proceeds (in $) $16,700 10 June 8 70 --Select-- O $ $ Need Help? Read It
Determine Due Date and Interest on Notes Determine the due date and the amount of interest due at maturity on the following notes. When calculating interest amounts, assume there are 360 days in a year. Round intermediate calculations to 4 decimal places, and round your final answers to the nearest whole dollar. Date of Note Face Amount Interest Rate Term of Note a. January 15 $73,400 11 % 30 days b. April 1 17,375 13 90 days c. June 22 31,500 12 45 days d. August 30 23,265 10 120 days e. October 16 12,530 12 50 days Due Date Interest Due at Maturity a. $fill in the blank 2 b. $fill in the blank 4 c. $fill in the blank 6 d. $fill in the blank 8 e. $fill in the blank 10
Explain well with proper step by step Answer.
8. 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) Rate of interest Length of note Maturity value date of note date note discounted discount period bank discount proceeds $25,000 9% 60 days June 8 July 10
Complete the following table for the simple discount notes. Use the ordinary interest method. Note: Round your answers to the nearest cent. Amount due at maturity 4,400 Discount rate 6.25% Time 170 days Bank discount Proceeds

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