Determine Due Date and Interest on NotesDetermine the due date and the amount of interest due at maturity on the following notes: Date of NoteFace AmountInterest RateTerm of Notea.January 10*$40,000 5%90 days b.March 1918,000 8 180 days c.June 590,000 7 30 days d.September 836,000 3 90 days e.November 2027,000 4 60 days *Assume that February has 28 days.Assume 360-days in a year when computing the interest.NoteDue DateInteresta.Apr. 10 $b.Sept. 15 c.July 5 d.Dec. 7 e.Jan. 19

Interest amount = principal amount x interest rate x ( number of days note / 360 days )

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College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterD: Notes Payable And Notes Receivable

Section: Chapter Questions

Problem 2P

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Determine Due Date and Interest on Notes

Determine the due date and the amount of interest due at maturity on the following notes:

	Date of Note	Face Amount	Interest Rate	Term of Note
a.	January 10*	$40,000			5%	90 days
b.	March 19	18,000			8	180 days
c.	June 5	90,000			7	30 days
d.	September 8	36,000			3	90 days
e.	November 20	27,000			4	60 days

*Assume that February has 28 days.

Assume 360-days in a year when computing the interest.

Note	Due Date	Interest
a.	Apr. 10	$
b.	Sept. 15
c.	July 5
d.	Dec. 7
e.	Jan. 19

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