Answered: Sol Sib borrowed P14,000 for 10 months…

Sol Sib borrowed P14,000 for 10 months from a rural bank. The banker discounts the note at 8%, Find the discount and the proceeds

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 1CE

See similar textbooks

Related questions

Q: Below are departmental income statements for a guitar manufacturer. The company classifies…

A: Direct expenses are those which are associated to the goods directly. This simply means that the…

Q: Find the denreciation amount in the second year using either 150% or 200%

A: Answer:

Q: what are the projected total operating assets? Do not round intermediate calculations. Round your…

A: Introduction:- First we calculate ratio of each operating assets of last year to last year's sales…

Q: The following are the carrying amounts and tax bases for assets and liabilities of MNQ Company as…

A: Taxable income: Taxable income is the amount applied for computing tax liability for the tax payers…

Q: 21. A promissory note which is dated January 1, 20A was received from a client for service rendered…

A: Promissory Note- It's a document that spells out the terms of the loan and indicates when it's due…

Q: Question 2: Which of the following is an accurate statement about SUTA tax? Answer: A. O Every state…

A: The state unemployment tax act known as SUTA is a payroll tax employers are required to pay on…

Q: A Laser cutting machine is costed on a machine hour rate basis. On the basis of the given…

A: Please see Step 2 for required information.

Q: The following information is extracted from the general ledger of Super Massage Clinic on December…

A: Owner's Equity is the rights of the owners on the assets and responsibility towards the payment of…

Q: Make the T-Accounts of the following transaction: JOURNAL ENTRIES Date/# Account Title Debit Credit…

A: T-account means the ledger account in which the transaction related with one specified account is…

Q: pioye ecunty Answer: A. O is greater than the employee's Social Security ta 3. O is the same as the…

A: The federal unemployment tax act (FUTA) with state unemployment systems providers for payments of…

Q: Louie Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the…

A: Service costs = Ending PBO - Interest costs + benefit paid to retirees - Beginning PBO where,…

Q: formation. Pamu contributed a parcel of land that cost her P200,000. Kevin contributed P300,000…

A: partnership is : two or more parties in which they to share profit and capital in the aggred ratio…

Q: Hagstaff Company has budgeted July production of 6.900 units. Variable factory overhead is $13 per…

A: Budgeted overhead means that estimated amount of overhead to be incurred in future on the basis of…

Q: Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods The following…

A: The question is based on the concept of Cost Accounting.

Q: MM, NN and OO are partners with Capital balances on December 31, 2021 of 300,000, 300,000 and…

A: (1). Computation of OO’s acquisition of the second hand equipment that will result in the reduction…

Q: Mike and Jeff still run a law practice in French Polynesia as a general partnership with each…

A: Partnership means a group of persons who come together with a purpose to control and manage the…

Q: LAM, KO and TO share profits and losses as follows: LAM 20%, KO 30%, and TO 50%. The partnership’s…

A: b. P516,600 Explanation: Estimated Loss = (To's Capital - Cash Received)/Profit and Loss Sharing…

Q: You are a CPA and you are the CFO (Chief Financial Officer) of USB Computer Technologies Inc., a…

A: Auditing and assurance are very important for the corporation because users of the financial…

Q: hich of the following is not one of the components of other comprehensive income? a. changes in…

A: Which of the following is not one of the components of other comprehensive income? a. changes…

Q: TRUE OR FALSE? A piece of machinery can be a noncurrent asset held for sale.

A: Assets held-for-sale are regarded as the non-current assets, which any firm plans to sell in the…

Q: Haroldsen Corporation is considering a capital budgeting project that would require an initial…

A: Net present value is one of the project evaluation technique to analyze whether it is profitable.…

Q: Market li

A: Bid price means the highest price the buyer is willing to pay and ask price is the lowest price the…

Q: TRUE OR FALSE? 1. Acquisition of land by issuing shares of stock is a financing activity. 2. Total…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: When preparing the financial statements for a company, the factory equipment is valued at $800,000…

A: Accounting conventions are the practices to be followed in the preparation of book of accounts.

Q: Statement 1 – If partners X, Y and Z agreed to divide profit in the ratio of 1:2:3, this indicated…

A: Profit sharing ratio is the proportion in which profit or loss is shared among partners of a…

Q: A company provides each of its directors with a car. It has purchased these at £35,000 each. After 4…

A: Depreciation is charged against the value of fixed assets. It can be calculated by using the…

Q: IA - RECEIVABLE FINANCING 4. Identification. This is the sum of the face value of notes…

Q: 18. IDENTIFICATION. This refers to a sale of a single of multiple receivables to any financing…

A: The question is related to the identification and true and false.

Q: 2001 for a value of $75,000. If the Company had barrowed money from the bank it w outd 8%. What is…

A: In the given case, the company has purchased the crane on 1st January 1997 for 75,000 payable on…

Q: Which of the following correctly describes defined benefit (DB) pension plans? A-A typical example…

A: Defined benifit is also written as DB. It is the pension plan in which the employee will receive the…

Q: xplain the income statement and balance sheet information based on two tables (250-300) words

A: We are provided with a vertical analysis of this company's income statement and balance sheet for…

Q: Purchase related transactions the following selected transactions were completed by epic co-during

A: For August 3 : Inventory = 33400 * 98% = 32732 For August 13 : Cash = 32732 - 2450 = 30282

Q: If the partnership’s cash is 25,000, the net assets are 250,000 and the total claim of the outside…

A: The net assets is calculated as difference between total assets and liabilities. Net assets = Total…

Q: Rose Company had no short-term investments prior to this year. It had the following transactions…

A: Cost of the share is the price at which the shares are purchased. Fair value of the share is the…

Q: On September 2, 2020, Nino, Olan, and Pete formed a partnership investing cash of P945,000,…

A: Solution Liquidation of partnership means to end of the partnership and firm's assets are sold and…

Q: 1a. An asset is purchased for $90,000. It is expected to have a useful life of six years and a…

A: Formula to find out straight line depreciation (SL depreciation is (Cost - Salvage value)/Useful…

Q: Use the information presented in Southwestern Mutul Bank's balance sheet to anthe fngte Bank's…

A: The question provides us with bank's balance sheet. Any transaction has dual effect in the books of…

Q: The 2021 comparative balance sheet and income statement of Auga Company Ltd, have just been…

A: The question is related to Cash Flow Statement. Cash Flow Statement is summary of cash receipts and…

Q: Find the closing stock using the stock valuation methods of FIFO and LIFO Data as follows: Jan.2…

A: Inventory valuation is based on the flow of exemption used by the company. There are many methods…

Q: Scenario: The 2021 comparative balance sheet and income statement of Auga Company Ltd, have just…

A: The question is related to Cash Flow Statement. Cash Flow Statement is summary of cash receipts and…

Q: The New Zealand Equivalent to the IASB Conceptual Framework for Financial Reporting (2018) states…

A: As per the Valuation of Inventory the Inventory will be valued at lower of two:- (i) Cost; or…

Q: Greek Manufacturing Company produces and sells a line of product that are sold usually all year…

A: The question is related to Marginal Costing and Cost Volume Profit Analysis. The details are given…

Q: Which of the following are classed as fixed assets? I. Debtors II. Plant and machinery III. Cash in…

A: Fixed asset indicating a long term usable assets that cannot converted quickly into cash. There are…

Q: QUESTION “In all partnerships, whether it is expressed in the deed or not, the partners are bound to…

A: Sec. 34-152. Sharing of profits and losses “In all partnerships, whether it is expressed in the…

Q: X, Y and Z agreed to form a partnership with X contributing 50,000 for 2/3 interest in the…

A: Total assets of the partnership upon formation = Amount contributed by X x 1 / profit sharing…

Q: A factory has decided to purchase some new equipment for P650, 000. The equipment will be kept for…

A: The declining balance method is also known as reducing balance method or diminishing balance method…

Q: In question 1 why were the 19,000 and 11,000 payables amount not recorded and why credit expense…

A: The given balances for sales commissions payable on 31st dec 2019 and 2020 are closing balances. So,…

Q: Journalize the transactions shown below in the two-column general journal that follows. Calculate…

A: Answer:

Q: Given the following data for Calandrucci Company, calculate the cost of goods manufactured: In S's…

A: Formula: Cost of goods manufactured = Direct materials + Direct labor + Manufacturing overhead +…

Q: Problem 11-3 Twin City Enterprises had the following information available for the payroll of May…

A: Payroll taxes: The tax obligations imposed on the payroll remuneration earned by an employee while…

Question

1. Sol Sib borrowed P14,000 for 10 months from a rural bank. The banker discounts the note at 8%, Find the discount and the proceeds.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

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

A ski company takes out a $400,000 loan from a bank. The bank requires eight equal repayments of the loan principal, paid annually. Assume no interest is paid or accumulated on the loan until the final repayment. How much of the loan principal is considered a current portion of a noncurrent note payable in year 3? A. $50,000 B. $150,000 C. $100,000 D. $250,000
Gifts Galore Inc. borrowed 1.5 million from National City Bank. The loan was made at a simple annual interest rate of 9% a year for 3 months. A 20% compensating balance requirement raised the effective interest rate. a. The nominal annual rate on the loan was 11.25%. What is the true effective rate? b. What would be the effective cost of the loan if the note required discount interest? c. What would be the nominal annual interest rate on the loan if the bank did not require a compensating balance but required repayment in three equal monthly installments?
Sunlight Growers borrows $250,000 from a bank at a 4% annual interest rate. The loan is due in three months. At the end of the three months, the company pays the amount due in full. How much did the company remit to the bank? A. $250,000 B. $10,000 C. $252,500 D. $2,500
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
Alana Olsen borrowed $5,000 for 90 days from First Bank. The bankdiscounted the note at 7 percent.a. What proceeds did Olsen receive?b. What is the effective rate to the nearest basis point?
Janice Dart signed a 140-day simple discount note at a rate of 9.9% with a maturity value of $82,000. The bank she borrowed the funds from sold the note 40 days later at a 10% discount rate. Find (a) the discount on the original note, (b) the proceeds of the original note, (c) the discount period, (d) the discount at the time of sale, and (e) the proceeds to the bank at the time of sale.
Ken borrowed $3400 from the bank for 20 months. The bank discounted the loan at 7.4%.How much was the interest?$Correct State your result to the nearest penny.How much did Ken receive from the bank?$Correct State your result to the nearest penny.What was the actual rate of interest?
A man borrows money from a bank which uses a simple discount rate of 14%. He signs a promissory note promising to pay P500 per month at the end of the 4th, 6th and 7th months, respectively. Determine the amount he received from the bank.
Ms. Glydel Marquez borrowed money from a bank. She received from the bank Php1,342 and promised to repay Php1,535 at the end of 9 months. Determine the following: (a) simple interest rate (b) discount rate or often referred as Banker’s discount.
Stacy borrowed $2700 from the bank for 9 months. The bank discounted the loan at 3.1%.How much was the interest?$ State your result to the nearest penny.How much did Stacy receive from the bank?$ State your result to the nearest penny.What was the actual rate of interest?% State your result to the nearest hundredth of a percent. Not use excel
On May 15, Maynard Co. Borrowed cash from texas bank by issuing a 60 day note with a face amount $100,000. a. Determine the proceeds of the note. Assuming that the note carries an interest rate of 6%.b. Determine the proceeds of the note, assuming that the note is discounted at 6%
Juan Pablo borrowed $1500 from a bank for 13 months. The bank discounted the loan at 5.7%.What is the loan's discount?$What is the net amount of money Juan Pablo receives?$What is the loan's actual rate of interest? (to the nearest hundredth of a percent)