Answered: If the company accepted a Notes…

Business

Accounting

If the company accepted a Notes Receivable on Oct 1, X1 for $60,000 at 8%, due in one year, what is the Maturity value?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 8CDQ

See similar textbooks

Related questions

Q: A debt of P 30,000 was paid for as follows: P 4,000 at the end of 3 months, P 5,000 at the end of 12…

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: A customer takes out a loan of $150,000 on January 1, with a maturity date of 36 months, and an…

A: Interest on loan:-It is the rate levy on the initial amount of loan and this is the additional…

Q: A company receives a 10%, 90-day note for $5,700. The total interest due on the maturity date is:…

A: Notes Receivables (also known as promissory notes) are a promise in writing to receive a certain…

Q: Assume a bank offers an effective annual rate of 7.20%. If compounding is monthly what is the APR?…

A: Annual percentage rate is the rate of interest which is charged to borrowers by the lenders and…

Q: At what nominal rate of interest, convertible monthly, is $16,000 the present value of $290.10 paid…

A: Given: Future value = $16,000 Present value = $290.10 Years = 6 years Periods = 6*12 = 72

Q: What will be the total interest earned on a 6%, $2,000 note receivable that is due in nine months?

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: Sydney limited draws a promissory note with a face value of $50 000 and a maturity of 181 days. The…

A: Interest rate can be calculated as: = Discount amount / Present value * 365/ Days to maturity * 100

Q: A $12,000 non-interest-bearing promissory note is discounted at 6% compounded monthly, three years…

A: Maturity amount (MV) = $12,000 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Period =…

Q: What is the total interest paid on a loan of $5,000 at APR = 10% for one year.

A: Loan amount = $5000 Interest rate = 10% Period = 1 year

Q: Assuming a 360-day year, when a $17,100, 90-day, 8% interest-bearing note payable matures, total…

A: The note payable is issued to creditor as a promise to pay in future.

Q: on June 8th Alton Co issued an $70620 11% 120 Day note payable to seller Co. Assuming a 360 day year…

A: Interest on Note = Face value of Note x rate of interest x No. of days /360 days =…

Q: What is the total interest paid on a loan of $5,000 at APR = 8% for one year.

A: Loan amount (LV) = $5000 Interest rate (r) = 8% Period (n) = 1 Year

Q: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an…

A: Formula: Interest amount = Loan amount x Interest rate x Time period

Q: Anderson Co. issued a $55,000, 60-day, discounted note to National Bank. The discount rate is 6%. At…

A: In the above case, the borrower must pay the par value at the maturity which is $55,000. The…

Q: A debt of P 15,000 was paid for as follows: P 4,000 at the end of 3 months, P 5,000 at the end of 12…

A: Quaterly Interest rate is 18%4=4.5% To Find:- 'F'

Q: ne 8, Alton Co. issued an $79,432, 10%, 120-day note payable to Seller Co. Assuming a 360-day year…

A: Solution: Maturity value of the note is amount that is arrived by adding total amount of interest…

Q: Your firm is offered credit terms of 1/10, net 35. What is the effective annual interest rate on…

A: Calculating the value of effective interest rate on the credit terms. We have,Effective interest…

Q: Determine the maturity date, interest at maturity, and maturity value for a 90-day, 10 percent,…

A: Given: Note value : $36000 Interest rate = 10% Bill date : 15 Feb Due date = 90 days

Q: Assuming a 360-day year, when a $14,700, 90-day, 12% interest-bearing note payable matures, total…

A: The term note payable refers to the promissory agreement between two parties in which one party…

Q: An interest bearing promissory note for 90 days at 5.6% p.a. has a face value of $120,000. If the…

A: Step 1 Discount of trade bills is short-term financing or credit facility provided by bank in which…

Q: A loan of ₱2,000 is made for a period of 13 months, from January 1 to January 31 the following year,…

A: The future amount due at the end of the loan period is the sum of the principal amount and the…

Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 12%, on a 90-day,…

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

Q: Assuming a 360-day year, when a $16,098, 90-day, 8% interest-bearing note payable matures, total…

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

Q: On September 1, 2020, ABC Company borrows $40,000 on a 2-month note that charges an annual interest…

A: Maturity Amount = Amount Borrowed + Interest Rate

Q: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an…

A: The process of creating financial statements to indicate an entity's financial condition is known as…

Q: Compute the amount or maturity value of a note at the end of 3 years, if the principal or face value…

A: Compound interest is one of the form of interest used for calculation. Under it, interest is charged…

Q: Deposits of GHS100 are made every month for 5 years into an account crediting interest at a nominal…

A: Firstly, we shall calculate Value of investment after 5 years. Then we shall calculate the Monthly…

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

A: Given: Face value = $80,400 Interest rate = 7% Days = 120

Q: on nov, 1. Alan co. signed a 120 day, 12% note payable, with a fac valus of 9,900. what is the…

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

Q: suming a 360-day year, when a $12,600, 90-day, 11% interest-bearing note payable matures, total…

A: Maturity Value of Note Payable = Face Value + Interest Maturity value = Face Value + (Face Value x…

Q: Chang, Inc. issued a 3-month note in the amount of $360,000 on 12/01/17 with an annual rate of 5%.…

A: Accrued interest is $1,500. Computation of accrued interest: Excel spread sheet:

Q: On January 1, 2018, Company B borrowed 50,000 signing a 3-year installment note payable with yearly…

A: Note Payable - payment schedule: Beginning Balance Interest Installment amount Principal amount…

Q: What amount must be deposited today, if, starting one year from today, you wish to make 15 equal…

A: Given, annual withdrawals $3,450. Number of payments 15. Interest rate is 0%.

Q: Calculate the simple interest and maturity value. Principal $9,000, Interest rate 2.25% and time is…

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: What rate of interest j4 must be earned for deposits of $100 at the end of each month to accumulate…

A: Following details are given in the question: Deposit (Payment) each month = $100 Time period = 18…

Q: On June 8, Williams Company issued an $91,200, 11%, 120-day note payable to Brown Industries.…

A: Notes are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: The interest on a $3,000, 10%, 180-day note receivable is (assume 360 days per year} $150 $3,300…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: On June 8, Williams Company issued an $92,400, 11%, 120-day note payable to Brown Industries.…

A: Solution: Maturity value of note is computed as principal amount of note plus interest amount till…

Q: What value of r will make the future value of the account P5, 200 in six months?

A: Future Value: It is the future worth of the present cashflows or the present sum of money. Future…

Q: A 120-day, 10% interest-bearing note receivable is sold to a bank with recourse after being held for…

A: It is the document that acts as a written promise for a certain payment.

Q: On June 8, Williams Company issued an $80,000, 5%, 120-day note payable to Brown Industries.…

A: maturity value of the note = issue price + Interest accrued

Q: In October 2008, six-month (182-day) Treasury bills were issued at a discount of 1.42%. What was the…

A: Treasury bills are short term financial instruments that are issued by the US treasury with a…

Q: If 4500 OMR is deposited in an account that pays 12% interest annually, Calculate Q1. the interest…

A: Calculate the interest amount by using following formula: Interest = (Amount*(1+Rate)^periods) -…

Q: Assuming a 360-day year, when a $11,392, 90-day, 10% interest-bearing note payable matures, total…

A: Interest expense for 90 day period = issue price × Interest rate × 90/360

Q: On June 8, Williams Company issued an $74,400, 7%, 120-day note payable to Brown Industries.…

Q: On June 8, Alton Co. issued an $75,537, 7%, 120-day note payable to Seller Co. Assuming a 360-day…

A: Maturity value of the note = Principal + Interest = $75537+1763 = $77300

Question

If the company accepted a Notes Receivable on Oct 1, X1 for $60,000 at 8%, due in one year, what is the Maturity value?

Expert Solution

Step 1

Maturity value is the total amount including the interest on the Notes Receivable till it's maturity years.

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

Knowledge Booster

Learn more about

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

Similar questions

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
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?
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?
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market rate of 7%. Interest is paid annually. What is the amount of interest the bondholders will receive at the end of the year?
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%
A companys sales for January are $250,000. If the company projects warranty obligations to be 5% of sales, what is the warranty liability amount for January?
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
Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at the end of the month for 12 months. The interest rate is 12% annually. If the monthly payments are $888.49, what is the journal entry to record the cash received on Jan. 1 and the first payment made on Jan. 31?
On April 1 a company sells a 5-year, $60,000 bond with a 7% stated interest rate. The market interest on that day was also 7%. If interest is paid quarterly, the company makes interest payments of ________. A. $1,050 B. $3,150 C. $4,200 D. $5,250
Charleston Inc. issued $200,000 bonds with a stated rate of 10%. The bonds had a 10-year maturity date. Interest is to be paid semi-annually and the market rate of interest is 8%. If the bonds sold at 113.55, what amount was received upon issuance?
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?