ABS-CBN COMPANY received from a customer a one-year, $500,000 note bearing annual interest of 8%. Five months prior to maturity, ABS-CBN COMPANY discounted the note at Asia United Bank at an effective interest rate of 10%. Required: Compute for the amount of proceeds from the note discounting and provide the entries for the discounting, assuming the note was discounted without recourse

Q: On February 1, Electronic Warehouse Co. issued a 45-day note with a face amount of $80,000 to Yamura…

A: Notes are issued by the organisation for receivables and payables that are to be received or paid in…

Q: On December 1, 2020, Papa Po Company assigned specific accounts receivable totaling P200,000 as…

A: Written promissory notes grant the receiver, or bearer, the right to obtain the sum specified in an…

Q: A 180-day, 12% interest bearing note receivable is sold to a bank without recourse after being held…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: On May 15, Maynard Co. Borrowed cash from texas bank by issuing a 60 day note with a face amount…

A: Notes payable is a negotiable instrument signed by the promisor who agreed to pay a certain amount…

Q: On January 26, Bella Co. borrowed cash from Conrad Bank by issuing a 120-day note with a face amount…

A: A promissory note can be described as a legal document that documents a loan between the lender and…

Q: On November 1, 2021, FDN Trading accepted a 90-day, 8% P7,000,000 note from ABC Co. FDN immediately…

A: Maturity value of the note = Face value of the not + Interest on the note = 7000000 +…

Q: On June 8, Williams Company issued an $80,400, 7%, 120-day note payable to Brown Industries.…

A: Interest on note = Face value of notes x rate of interest x no. of days / 360 days = $80,400 x 7% x…

Q: The following note transactions occurred during the year for Zuber Company: On November 25, Zuber…

A: Counting of days of accrual Porter's note From November 25 to December 31st = 5 +31 = 36 days  Bank…

Q: On the first day of the fiscal year, a company issues $32,000, 11%, five-year installment notes that…

A: The journal is the book in which the company will record the transactions in chronological manner.…

Q: On January 1, Year 1, Bryson Company obtained a $12,000, four-year, 9% installment note from…

A: Amortization is the payment of liability with a fixed settlement schedule in steady installments…

Q: On November 30, accounts receivable in the amount of P900,000 were assigned to Hello Finance Co. by…

A: SOLUTION- ACCOUNTS RECEIVABLE   IS A BALANCE  OF MONEY DUE TO A FIRM FOR GOOD OR SERVICES DELIVERED…

Q: On April 1, Year 1, Halo Co. issued a $5,000 face value discount note to the Capri Bank. The note…

A: Amount of cash received = Face value of the Note - Discount amount where, Discount amount = Face…

Q: At what amount should be the note receivable from UUU Company be reported at year-end?

A:

Q: Al Havier Manufacturing received a Php 350,000 promissory note at 11% simple interest for 96 days…

A: Asper the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…

Q: The notes receivable account of Caimito, Inc. consisted of the following:    1. 60-day note of…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: On July 31, 20A, ABC company discounted at the bank, a customer's 1,200,000, 6-month 10% notes…

A: Notes payable are signed arrangements (promissory notes) between two parties whereby one offered to…

Q: Anderson Co. issued a $50,932, 60-day, discounted note to National Bank. The discount rate is 1196.…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: On January 1, Pina Colada Corp. lent $38,000 to Kingbird, Inc., accepting Kingbird's $50,578,…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS   Account title and explanation  Debit  Credit…

Q: Karen Company discounted its own Php 250,000 one year note at a bank at a discount rate of 12% when…

A: The prime rate is the lending rate specified by the central bank of a country which is used as a…

Q: Cornbip Company received from a customer a on-year, $500,000 note bearing annual interest of 8%.…

A: The interest amount to be received by the company shall be considered while calculating the amount…

Q: On May 15, Franklin Co. borrowed cash from Dakota Bank by issuing a 90-day note with a face amount…

A: (a) The issued note cannot be discounted. It is issued at face value. Therefore, the proceeds of the…

Q: How much is Llido’s equity in the assigned accounts receivable as of December 31?

A: a Cash  $723,000     Finance Charges ($900,000*3%) $27,000      To Notes Payable…

Q: On June 8, Williams Company issued an $73,207, 7%, 120-day note payable to Brown Industries.…

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

Q: Omega Chemicals Ltd. took a $440,000 two-year note receivable from a customer in connection with a…

A: Price of the bond = c × F × (1 − (1 + r)-t)/r+F(1 + r)t C=Interest Rate F= Face Value r=Market…

Q: On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount…

A: a. In this case, the note is not discounted. Hence, the proceeds amount of the note is equal to the…

Q: On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount…

A: a. Note issued is at face value of $150,000. The issued note is not discounted. Hence, the proceeds…

Q: X Corporation accepted a P400,000 face value, six-month, 10% note dated May 15 from a customer. On…

A: Simple interest = Principal ×Interest rate × Time =P400,000 × 10% × 612=P20,000   Maturity value =…

Q: Tri State Bank was the payee of a $60,000 note dated August 16. The note was made for 120 days and…

A: Since, note is a discount note( not interest bearing), the value of loan = discounted present Value…

Q: On April 1, Year 1, Halo Co. issued a $5,000 face value discount note to the Capri Bank. The note…

A: Formula: Discount amount = Face value amount x Discount rate

Q: On December 1, 2020, Papa Po Company assigned specific accounts receivable totaling P200,000 as…

A: Carrying amount is defined as the asset original cost minus the accumulated depreciation, and at…

Q: In reporting the note in Karen Company statement of financial position, prior to maturity what rate…

A: Prime Rate is the interest rate charged by commercial banks to their most creditworthy customers.

Q: On October 1, Eder Fabrication borrowed $74 million and issued a nine-month promissory note.…

A:

Q: On November 1, Kotler Company accepted a 3-month note receivable as payment for services provided to…

A: From November 1 to December 31 = 2 months Interest accrued on December 31 = $9,000 x 6% x 2/12 = $90…

Q: On May 1, Huxley, Inc borrowed $146,000 cash from First Banc Corp under a six-month…

A: Non-Interest bearing note refers to the note payable in which there is no interest rate. It is…

Q: A consumer gave ABS-CBN COMPANY a one-year, $500,000 note with an annual interest rate of 8%.…

A: Discounting appears to be the process of transferring or releasing a customer's notes receivable to…

Q: mobile Co issued a $58,904 60-day discounted note to Guaranty Bank the discount rate is 12% at…

A: Cash proceeds from issue of discount note = Amount of the note - discount = $58,904 -…

Q: On May 15, Maynard Co. borrowed cash from Texas Bank by issuing a 60-day note with a face amount of…

A:

Q: On June 30, 2002, Simon Company discounted a customer's $180,000, 6 month, 10 percent note…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: BBY Company loaned $66,116 to Orwell, Inc, accepting Orwell's 2-year, $80,000, zero-interest-bearing…

A: Discount on Notes receivable = Face value - Issue price = $80,000 - $66,116 = $13,884

Q: On January 1, Year 1, Luzak Company issued a $120,000, five-year, 6% installment note to McGee Bank.…

A:

Q: Life.com issued $10 million of commercial paper on April 1 on a nine-month note. Interest was…

A: Discount on notes payable = face value of notes x discount rate x Note period = $10,000,000 x 6% x…

Q: ABC Company accepted a P400,000 face value, 6-month, 10 percent note dated May 15 from a customer.…

A: The discounted note receivable is getting money from bank against customers' note receivable.

Q: The notes receivable account of Kilo, Inc. consisted of the following:    1. 60-day note of P10,000…

A: The note receivable is an asset for the business, which is due for payment from customers on future…

Q: CPA Co. received from a customer a one-year, P1,000,000 note bearing annual interest of 10%. After…

A: Factoring is the financial institution where firm can sell their account receivable at a discount…

Q: BAYAN Company had a 60-day note of P10,000 dated May 15 with a 9% interest rate, discounted at the…

A: The note receivable is a current assets, which is issued by the debtors of the business. Discounting…

Q: On April 1, Year 1, Halo Co. issued a $5,000 face value discount note to the Capri Bank. The note…

A: Formula: Discount amount = face value amount x Discount rate

Q: At year-end, Roth Company issued a P1,000,000 face value note payable to Wake Company in exchange…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Valley Designs issued a 90-day, 9% note for $96,000, dated April 19, to Bork Furniture Company on…

A: Notes receivable are made by Debtors as a promissory note that they will make the payment on due…

Q: C company discounted its own 250,000 one year note at a bank, at a discount rate of 12% when the…

A: Company discounting its notes means, the company is presenting its notes receivable from the…