Answered: A company receives a $49,000, 12%,…

A company receives a $49,000, 12%, 60-day note. The maturity value of the note is a. $500,80 b. $49,000 c. $880 d. $49,980

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6MC: On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest...

See similar textbooks

Related questions

Q: et income did Mickey Mouse earn on the note

A: Interest on note receivable = Face value of note receivable * Rate of interest * Number of months…

Q: ADMIRABLE Company accepted from a customer P5,000,000 face amount, six- month, 10% note dated August…

A: On Maturity Admirable Company received from customer following amounts : Particulars Amount…

Q: A 60-day, 6% note for $26,400, dated May 1, is received from a customer on account. The maturity…

A: Formula: Maturity Value of Note = Face Value of Note + Interest on Note Maturity Value of Note =…

Q: A 60-day, 5% note for $10,200, dated April 15, is received from a customer on account. The face…

A: The face value of the note is $10200

Q: FDN Trading sold merchandise for P50,000 less 10 on terms P10,000 down payment and the balance…

A: Notes Receivable - Notes Receivable is the promissory note issued by the individual owing some…

Q: A 90-day, 10% note for $10,000 dated March 15 is received from a customer on account. The face value…

A: The face Value of the note is the amount at which the note is issued. It is the Principal Amount.

Q: 14. On August 31, 2020, a company lent money to a customer for P30,000. The customer signed a note…

A: Given, Principal amount, P = P 30,000 Interest rate, i = 9% No. of years, n =1

Q: A company receives a $9,000, 8%, 60-day note. The maturity value of the note is a. $120. c. $9,120.…

A: Note receivable: Note receivable refers to a written promise received by the creditor from the…

Q: Dold Acrobats lent $16,529 to Donaldson, Inc., accepting Donaldson's 2-year, $20,000, zero interest…

A: Zero-interest-bearing note: A noninterest-bearing note is a note or bond with no stated interest…

Q: A company received a Note Receivable from a customer for a sale. The 9 percent, 9-month note was…

A: Value of notes receivable $1,50,000 Rate of Interest 9% Period (May 31 to December 31) 7 months…

Q: A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of interest is…

A: Loan amount (P) = $40000 Interest rate (r) = 4% Period from June 10 to Oct 11 (d) = 123 Days

Q: A 100-day note with a face amount of $54,000 and interest rate of 9% is issued on June 1. Required:…

A: 1.

Q: ote, the company endorsed the note with recourse (discounted) to YZ Finance Company at a 9 percent…

A: (a) Compute the company's proceeds from the note as follows: -

Q: 3-year, P900,000 receivable due as follows 0. On Jan. 1, 20x1, Parya Co. rece note…

A: Introduction: The present value (PV) of a future sum of money or stream of revenue is its current…

Q: On May 15, 201X, Reed Co. gave Fuligin Co. a 180-day, $9,000, 8% note. On July 14, Fuligin Co.…

A: Notes receivable is a category of debt instrument issued by corporations or big entities to raise…

Q: Cube Ice Company received a 120-day, 10% note for $96,000, dated April 9 from a customer on account.…

A: Given: Number of days to maturity = 120 days Discount rate = 10% Maturity value = $96,000 Date 9th…

Q: A 60-day, 12% note for $38,400, dated May 1, is received from a customer on account. The maturity…

A: The Maturity Value refers to the total value that is recieved at the end of the period. Like for the…

Q: A 60-day, 9% note for $32,400, dated May 1, is received from a customer on account. The maturity…

A: The maturity value of note can be calculated by using this equation Maturity value…

Q: On july 31, 2020, Clear company discounted at the bank a customer's P 600,000 interest-bearing note,…

A: Maturity Value = Principal + (Principal * Rate * Time) = P 600,000 + (P 600,000 * 0.10 * 6/12) = P…

Q: Business holds a 1-year N/R with a maturity value of 2.000 TL received from customer on May 1. The…

A: Finance expense = face value of notes receivable x discount rate x no. of months/12 = 2000 x 6% x…

Q: Mickey Mouse Corporation held a P1,500,000, 3-month, 15 percent note. One month before maturity,…

A: Mickey Mouse Corporate held a P 1,500,000 3 month, 15% note. The same was discounted with Bank 1…

Q: A company grants a payment extension to its customer by converting that $15,000 accounts payable to…

A: Interest on 45 days note for 30 days 115000*12%*30/360=$150

Q: On August 1, a $60,000, 7%, 3-year installment note payable is issued by a company. The note…

A: Principal =$60,000 Interest =$60,000×7% =4200 Principal + interest paid in 31 July =…

Q: Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. Jasper's entry to record the collection…

A: Journal entries is recording of the transaction in the accounting journal in a chronological order.…

Q: Houston Company receives a six-month note from a customer. The note has a face amount of $8,000 and…

A: Interest Rate: It is a portion of the principal amount that is charged by a lender for the use of…

Q: 15. On September 15, the company received a P180,000 6% 180-day note. This was discounted to the…

Q: Consider the following independent scenarios: On 9/1, company accepts a P10,000, 5%, 8-month note…

A: Notes receivable are asset accounts linked to an underlying promissory note, which specifies the…

Q: ML Company purchased merchandise for resale on January 1, 2021, for P5,000 cash plus a P20,000,…

A: Carrying amount of the note payable = Present value of principal + Present value of interest…

Q: Principal $60,000, Rate of interest 14%, Time 60 days.Date note made July 5, Date noted discontinued…

A: Solution: Principal amount of note = $60,000 Date of issue = July 5 Period = 60 days Maturity date =…

Q: On November 1, Alan Company signed a 120-day, 11% note payable, with a face value of $14,400. What…

A: The question is related to maturity value of of notes Payables issued on November 1st for 120 days…

Q: Quick Tire and Lube received a 120-day, 8% note for $72,000, dated April 9 from a customer on…

A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…

Q: Total interest to be earned on a $7,500, 5%, 90-day note is a. $93.75. c. $1,125.00. e. $125.00. b.…

A: Note payable: Note payable is also referred as promissory note. In this, borrower obtains a…

Q: Al Reem Co. signed an $18,000 six-month note payable on September 1 that bears intérest at a rate of…

A: Interest accrued on Note at December 31 = Face value of note x rate of interest x no. of months/12

Q: Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9 from a customer on…

A: Introduction: A journal entry is a record of a business transaction in an organization's accounting…

Q: True (t) or False (f) _____ A $15,000, 8%, 9-month note payable requires an interest payment of…

A: Interest on note payable = Amount x Annual Interest Rate x no. of months left12…

Q: A 60-day, 5% note for $10,800, dated April 15, is received from a customer on account. The face…

A: Introduction:- A 60-day, 5% note for $10,800 Dated April 15 It is received from a customer on…

Q: a company borrowed 12,000 by signing a 120 day promissory note at 15% the total to be paid at…

A: Formula: Interest amount = Principal amount x Interest rate x Time period.

Question

A company receives a $49,000, 12%, 60-day note. The maturity value of the note is
a. $500,80
b. $49,000
c. $880
d. $49,980

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
A business issued a $5,000, 60-day, 12% note to the hank. The amount due at maturity is: A. $4,900 B. $5,000 C. $5,100 D. $5,600
Entries for installment note transactions On January 1, 20Y2, Hebron Company issued a 175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual payments of 43,830, beginning on December 31, 20Y2. Journalize the entries to record the following:
Proceeds from notes payable 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 the note carries an interest rate of 10%. B. Determine the proceeds of the note, assuming the note is discounted at 10%.
A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
On January 1 a company issues a $75,000 bond that pays interest semi-annually. The first interest payment of $1,875 is paid on July 1. What is the stated annual interest rate on the bond? A. 5.00% B. 2.50% C. 1.25% D. 10.00%
Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000