Chang Co. issued a $40,073, 120-day, discounted note to Guarantee Bank. The discount rate is 8%. Assuming a 360-day year, the cash proceeds to Chang Co. are Select the correct answer. $43,279 $39,004 $40,073 $40,340

Q: Oriole Supply Co. has the following transactions related to notes receivable during the last 2…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: Big Bang Company accepted a P400,000 face value, six-month, 10% note dated May 15 from a customer.…

A: Maturity value of the note = Face value of note + interest = P400000 + (400000*10%*6/12) = P420,000

Q: Assuming a 360-day year, proceeds of $45,847 were received from discounting a $46,623, 90-day note…

A: Formula: Discount on bonds = Face value - cash received

Q: Dynatech Supply Corp. has the following selected transactions for notes receivable. Nov. 1 Lent…

A: Notes receivable: It is a written document by which the other person promises to pay a certain…

Q: January 1, Year 1, Luzak Company issued a $12,000, 4-year, 9% installment note to McGee Bank. The…

A: Journal Entry:  It is the first and foremost procedure in an accounting cycle. The transactions are…

Q: Bibimbap Company received from a customer a on-year, P500,000 note bearing annual interest of 8%.…

A: Maturity value of Note = Face value of note + Interest on note = P500,000 + (P500,000 x 8% x 1…

Q: Morton Company had the following select transactions. 1, 2021 Accepted Remington Company's 1-year,…

A: Journal entries by far are one of the most crucial skills to develop in an accounting profession.…

Q: Chang Co. issued a $54,691, 120-day, discounted note to Guarantee Bank. The discount rate is 10%.…

A: Cash Proceeds from issuing a discounted note = Face Value of the note - Discount

Q: For the current period, ABC Co. had the following transactions with DEF Co.: Jul 01 Sales on account…

A: When an amount is due from a debtor of the business, the company can opt for receipt of other…

Q: On January 1, Year 1, Luzak Company issued a $47,000, 4-year, 9% installment note to McGee Bank. The…

A: Journal Entry: It is the first and foremost procedure in an accounting cycle. The transactions are…

Q: ABS-CBN COMPANY received from a customer a one-year, $500,000 note bearing annual interest of 8%.…

A: Discounting seems to be the act of transferring or surrendering a customer's notes receivable to a…

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: ABC Company accepted from a customer ₱600,000 face amount, 9-month, 8% note dated June 15, 20x2. On…

A: Discount on note @12% =  Face value of note x rate of discount x no. of months/12 = ₱600,000 x 12% x…

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, FDN Trading signed a P150,000, 12 percent, 150-day note payable with the bank. The note…

A: Notes payable is defined as the liabilities that are usually issued for the long term. It indicates…

Q: hang Co. issued a $50,000, 120-day, discounted note to Guarantee Bank.  The discount rate is 6%.…

A: The person who promised to pay the specified amount by signing a note is treated as notes payable as…

Q: Assuming a 360-day year, proceeds of $41,011 were received from discounting a $42,171, 90-day note…

A: Amount of discount is $42,171 - $41,011 = $1,160 for 90 days. Therefore for a 360 day year, it would…

Q: The following information is available about Friends Company: a) Friends Company borrowed cash from…

A: It is pertinent to note that for discounted note interest payment is made upfront on the date of…

Q: 1.Justine Company received the proceeds of P48,750 from discounting a P50,000, 90-day note at…

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: On the first day of the fiscal year, Shiller Company borrowed $33,000 by giving a seven-year, 8%…

A: Journal entry

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 January 16, K Corp, accepted a P600,000, 9%, 90 day note from a customer. On February 10, the…

A: Step 1 Discount of trade bills is short-term financing granted by the Bank. The Bank purchases trade…

Q: On June 1, Mickey Mouse Corporation accepted a customer's P10,000, 9 percent, 3-month note. On July…

A: Total maturity value of Notes = Principal + interest = P10,000 + 10000*9%*3/12 = P10,225

Q: On the first day of the fiscal year, Shiller Company borrowed $26,000 by giving a three-year, 12%…

A: Notes payable is a liability account to repay a particular amount in a given period of time, where a…

Q: Chang Co. issued a $59,741, 120-day, discounted note to Guarantee Bank. The discount rate is 8%.…

A: Discounting of note means receiving payments from a note from the bank after deduction of bank…

Q: On January 1, 20X1, the company received a $10,000 three-year note bearing interest at 10% annually.…

A: Journal entry is a primary entry that records initially the financial transactions of the company.

Q: Bibimbap Company received from a customer a on-year, P500,000 note bearing annua nterest of 8%.…

A: Solution: Formula Sheet:   Answer Sheet:

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

A:

Q: On December 15, FDN Trading signed a P120,000, 4 percent, 120-day note payable with the bank. The…

A: Financial markets are venues where individuals and businesses may purchase and sell assets such as…

Q: An analysis of cash received from customers during the year revealed that the P705,600 was received…

A: Businesses dealing with goods and services mostly function on the credit system. A portion of the…

Q: Assuming a 360-day year, proceeds of $45,552 were received from discounting a $46,830, 90-day note…

A: Time value of money:   The value of money changes over a period time. The value of money depends on…

Q: Assuming a 360-day year, proceeds of $46,510 were received from discounting a $47,941, 90-day note…

A: Notes are issued at discount and that discount depends on time and interest rate on the note but…

Q: On October 1, Ramos Co. signed a $90,000, 60-day discounted note at the bank.  The discount rate was…

A: Part-A Amount which will be Discounted by Bank  = $ 90,000 x 6% x 60360…

Q: Chang Co. issued a $51,600, 120-day, discounted note to Guarantee Bank. The discount rate is 10%.…

A: Cash Proceeds = Issue Value - Discount Discount = Issue Value x Discount Rate x (120)(360)

Q: Abardeen Corporation borrowed $90,000 from the bank on October 1, Year 1. The note had an 8 percent…

A: A. AMOUNT OF CASH PAID : = $0   B. INTEREST EXPENSE : = $90,000 X 8% X 3MONTHS / 12 MONTHS  =…

Q: Chang Co. issued a $42,940, 120-day, discounted note to Guarantee Bank. The discount rate is 9%.…

A: Discount on note = 42,940 x 9% x 120/360 = 1,288

Q: Assuming a 360-day year, proceeds of $47,044 were received from discounting a $47,639, 90-day note…

A: Discount rate used by the bank is 5%

Q: Mobile Co. issued a $49,712, 60-day, discounted note to Guarantee Bank. The discount rate is 12%. At…

A: Issue Price of Note $49712 Discount rate 12% Assuming 360 days in a year Thus, interest = Issue…

Q: On June 04, FDN Company sold merchandise to ABC Company and accepted a 90-day, 12% P90,000 note.…

A: calculation of cash received upon discounting are as follows

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: Misk, Inc. received from a customer a one-year, $750,000 note bearing annual interest of 9%. After…

A: Note Receivable is an asset for the firm that the account receivable would settle their account on…

Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 8%, on a 90-day,…

A: Note payable, being a liability, is recorded at the liability side of the balance sheet. It can be…

Q: On July 31, 20A, ABC Company discounted at the bank, a customer's P1.2 million, 6-month 10% notes…

A: Recognized Gain or loss:- It is the profit one makes from selling an asset if the sale value is more…

Q: Chang Co. issued a $45,750, 120-day, discounted note to Guarantee Bank. The discount rate is 11%.…

A: Discount on note =Value of 120 day note × discount rate × 120 days365 days=$45,750 × 11% ×…

Q: Foremost Company received from a customer a one-year, P500,000 note bearing annual interest of 8%.…

A: Foremost company's Received note bearing annual interest of 8% = P500000 Maturity = 1 year Maturity…