Descriptors are provided below for six situations involving notes receivable being discounted at a bank. In each case, the maturitydate of the note is December 31, 2024, and the principal and interest are due at maturity. For each situation, determine the proceedsreceived from the bank on discounting the note.Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar.NoteNote FaceValueDate of NoteInterestRate1$90,0003/31/2024DateDiscounted8% 6/30/2024DiscountRateProceedsReceived10% $ 80,280290,000 3/31/20248% 9/30/202410%93,150390,000 3/31/20248% 9/30/202412%92,7004180,000 6/30/20246% 10/31/202410%5180,000 6/30/20246% 10/31/202412%6180,000 6/30/20246% 11/30/202410%

Let's start by computing the interest on the notes. That's the principal amount or note face value…

Answered: Descriptors are provided below for six…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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Descriptors are provided below for six situations involving notes receivable being discounted at a bank. In each case, the maturity date of the note is December 31, 2024, and the principal and interest are due at maturity. For each situation, determine the proceeds received from the bank on discounting the note. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. 1. $ 60,000 3/31/2024 6% 6/30/2024 8% _____ 2. 60,000 3/31/2024 6% 9/30/2024 8% _____ 3. 60,000 3/31/2024 6% 9/30/2024 12% ______ 4. 85,000 6/30/2024 4% 10/31/2024 8% ______ 5. 85,000 6/30/2024 4% 10/31/2024 12% _____ 6. 85,000 6/30/2024 4% 11/30/2024 8% ______
the following interest bearing promissory note was discounted at a bank by the oayee before maturity. use the ordinary interest method 360 days to calculate the missing information. round dollars to the nearest cent.
Determine the maturity date and interest for a notes receivableAmplify Bank establishes a $45,300, 7-month, 6% note dated October 31, 2021 with Q Tile LLC. All of the note's interest is due at its maturity date. After reviewing the information, determine the maturity date of the note and calculate the amount of interest that is due at the maturity date. 1. What is the maturity date of the note (include the month, day and year)? 2. What is the amount of interest that is due at the maturity date (round answer to two decimal places)? 2(a). Show the work for your interest calculation
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 Interest Value Rate (6) $1,200 Need Help? Read Date of Note Date of Discount Dec. 7 Term of Note (days) 130 Discount Period (days) Maturity Date Seled Discount Rate (6) LEA Maturity Value (in $) Proceeds (in 5)
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 Interest Rate (%) Date of Note Term of Note (days) Maturity Date Maturity Value (in $)$1,220 7.4 Sept. 18 130 ???? ???? Date of Discount Discount Period (days) Discount Rate (%) Proceeds (in $)Dec. 11 ??? 11.6 ???
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 $) $650 16 1 2 June 4 135 $ Date ofDiscount DiscountPeriod (days) DiscountRate (%) Proceeds(in $) Sept. 9 19.5 $
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.) Maturity Face Interest Date of Term of Maturity Value Value Rate (%) Note Note (days) Date (in $) $1,280 7.9 Sept. 13 130 January 21 $ 1316.52 Date of Discount Discount Proceeds Discount Period (days) Rate (%) (in $) Dec. 6 46 11.3 2$ 1,397.52
On April 26, two notes are discounted at the same rate t .The face of the first note is $7370 with a due date on May 31.The second note has a face value of $7430 with a due date on June 30. Determine the rate t , if the owner of the notes gets the same rate amount for the notes from the bank.
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.) Maturity Maturity Value Face Interest Date of Term of Value Rate (%) Note Note (days) Date (in $) $1,210 7.7 Sept. 19 130 January 27 $ 1243.64 Date of Discount Discount Proceeds Discount Period (days) Rate (%) (in $) Dec. 12 84 X 11.6 $ 1175.94
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.) Maturity Value Face Interest Date of Term of Maturity Value Rate (%) Note Note (days) Date (in $) $1,280 7.7 Sept. 14 130 January 22 $ 1315.59 Date of Discount Discount Proceeds Discount Period (days) Rate (%) (in $) Dec. 7 46 11.6
Analyzing Interest-Bearing and Noninterest-Bearing Notes Consider the following three separate scenarios for a one-year, $250,000 note payable issued on September 1, 2020. Complete the table, using the straight-line method to amortize any discount on note payable. Note: Round your answers to the nearest whole dollar. Cash received upon note issuance Cash paid at maturity date Total interest paid (cash) Interest expense in fiscal year 2020 Interest expense in fiscal year 2021 Amount of liabilities reported on FYE 2020 balance sheet: Note payable (net) Interest payable *FYE: Fiscal year-end $250,000 Note payable 12% Interest due at maturity 12% market rate Borrower's FYE*: Dec. 31 250,000 $ $250,000 Note payable 10% interest due at maturity 10% market rate Borrower's FYE: Nov. 30 $ $250,000 Note payable Noninterest-bearing 12% market rate Borrower's FYE: Dec. 31 $
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 $) $1,210 7.1 Sept. 15 130 ---Select--- January February March April May June July August September October November December $ Date ofDiscount DiscountPeriod (days) DiscountRate (%) Proceeds(in $) Dec. 8 11.9

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