On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount of $150,000.a. Determine the proceeds of the note, assuming that the note carries an interest rate of 10%.b. Determine the proceeds of the note, assuming that the note is discounted at 10%.

On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount of $150,000.a. Determine the proceeds of the note, assuming that the note carries an interest rate of 10%.b. Determine the proceeds of the note, assuming that the note is discounted at 10%.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 1CE

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Question

On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount of $150,000.
a. Determine the proceeds of the note, assuming that the note carries an interest rate of 10%.
b. Determine the proceeds of the note, assuming that the note is discounted at 10%.

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