Bank of the Philippine Islands has loaned P12,000 to Aina Company using a 60-day non-interest-bearing note. The bank discounted the note at 12%. The proceeds of the loan will be?
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Bank of the Philippine Islands has loaned P12,000 to Aina Company using a 60-day non-interest-bearing note. The bank discounted the note at 12%. The proceeds of the loan will be?
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- On January 7, 2021, Dang Company discounted its own P100,000, 180 day note at the Bank of the Philippine Islands at a discount rate of 20%. Dang repaid the note on the July 6, 2021, its due date. Based on a 360 day year, what was the effective rate of interest on the borrowing? Kindly show the solution please, thanks!Al Havier Manufacturing received a Php 350,000 promissory note at 11% simple interest for 96 days from one of its customers. After 70 days Al Havier discounted the note at the Short West Bank at a discount rate of 15%. The note was made on September 12. a. What is the maturity date of the note? b.What is the maturity value of the note? c. What is the discount date of the note? d. What proceeds will Al Havier receive after discounting the note? e. How much Al Havier Manufacturing will receive from its customer after 70 days? f. How much Al Havier Manufacturing will receive from Short West Bank? g. How much Short West Bank will receive from the customers of Al Havier manufacturing?American Bank has loaned $12,000 to Shoreline Petroleum Inc. using a 60-day non-interest-bearing note. The bank discounted the note at 12%. The proceeds of the loan will be a.$240. b.$12,240. c.$12,000. d.$11,760.
- Brooke Company discounted its own P5, 000,000 one year note at a bank, at a discount rate of 12%, when the prime rate was 10%. In reporting the note in Brooke’s statement of Financial position prior to maturity, what rate should Brooke use for the recording of Interest expense?Anderson Co. issued a $55,000, 60-day, discounted note to National Bank. The discount rate is 6%. At maturity, assuming a 360-day year, the borrower will pay?A note that is dated January 1st with a face value of P5000 comes due on March 15th with interest at 10%. If the owner of the note sells it on February 15th to a bank, which discounts the note at a discount rate of 12% - how much money does the bank pay on Feb 15th?
- On December 1, 2020, RB Company issued accounts receivable of Php6,000,000 to a bank in exchange for a loan of 80% of the accounts minus a 5% service charge on the accounts assigned. The entity signed a bank loan note. On December 31, 2020, the company collected Php2,000,000 in assigned accounts minus a discount of Php200,000. The collections were submitted to the bank as partial payment for the loan. The bank applied the collection first to the interest and then to the principal. On the loan balance, the agreed-upon interest rate is 1% each month. On the allotted accounts, the organisation took sales refunds of Php 100,000 and wrote down assigned accounts totaling Php300,000.On December 1, 2020, Papa Po Company assigned specific accounts receivable totaling P200,000 as collateral on P150,000, 12% note from a Bangko Bank. Papa Po Company will continue to collect the assigned accounts receivable. In addition to the interest on the note, the bank also charged 5% finance fee deducted in advance on the 150,000 value of the note. The December collections of assigned accounts receivable amounted to 100,000 less cash discounts of 5,000. On December 31, 2020 Papa Po Company remitted the collections to the bank in payment for the interest accrued on December 31, 2020 and the note payable. What amount should be disclosed as the equity of Papa Po Company in assigned accounts on December 31, 2020?On December 1, 2020, Papa Po Company assigned specific accounts receivable totaling P200,000 as collateral on P150,000, 12% note from a Bangko Bank. Papa Po Company will continue to collect the assigned accounts receivable. In addition to the interest on the note, the bank also charged 5% finance fee deducted in advance on the 150,000 value of the note. The December collections of assigned accounts receivable amounted to 100,000 less cash discounts of 5,000. On December 31, 2020 Papa Po Company remitted the collections to the bank in payment for the interest accrued on December 31, 2020 and the note payable. In the previous problem, what is the carrying amount of note payable on December 31, 2020?
- A consumer gave ABS-CBN COMPANY a one-year, $500,000 note with an annual interest rate of 8%. ABS-CBN COMPANY discounted the note at Asia United Bank at an effective interest rate of 10% five months before maturity. Assuming the note was discounted without recourse, compute the amount of revenues from the note discounting and submit the discounting entries.BAYAN Company had a 60-day note of P10,000 dated May 15 with a 9% interest rate, discounted at the bank on June 8 at 12%. The proceeds from discounting the 60-day note amounted to - provide solutionTri State Bank was the payee of a $60,000 note dated August 16. The note was made for 120 days and was discounted a 10%. On November 14, the note was rediscounted at New Hope Bank at 9%. a. How much did Tri State Bank loan to the maker of the note? b. How much had Tri State receive when it rediscounted the note? c. How much did Tri State make on the transaction? d. How much less interest was this than Tri State would have earned had it kept with note to maturity?