Trevor purchased a 90-day interest-bearing note at 4.80% p.a. that has a face value of$25,000.00.a. If she holds the note for the full 90 days, calculate the maturity value of the note.Round to the nearest centb. If the note is discounted 74 days from maturity at a rate of 6.50% p.a., calculate herproceeds.Round to the nearest cent

Solution:- When an interest bearing note is purchased, it provides interest to the holder. So,…

Answered: Trevor purchased a 90-day…

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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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?
On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
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
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?
Mark purchased a 90 -day interest-bearing note at 4.80% p.a. that has a face value of $5,000.00. a. If she holds the note for the full 90 days, calculate the maturity value of the note. Round to the nearest cent b. If the note is discounted 42 days from maturity at a rate of 6.20% p.a., calculate her proceeds. Round to the nearest cent
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.
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?
An accountant purchases a T-bill with a face value of $4,000 for $3,955. If the term of the T-bill is 115 days, what is the annual simple interest rate (in percent) earned by the client? Round to the nearest tenth of a percent. (Use 360 days in 1 year.)
Michael Jacobson signed a simple discount note with a face value of $ 8,400 at a discount rate of 15% for four months. Find the proceeds of the note and the effective interest rate. Find the proceeds of the note The effective interest rate is what %
Alice deposits $ 100 into an account today and $ 200 five years later . Interest for the first 10 years is credited at a nominal discount rate of d compounded semi - annually , and thereafter at a nominal interest rate of 8 % compounded quarterly. The accumulated balance at the end of 20 years is $ 1000. Calculate d .
Use the ordinary interest method, 360 days, to solve the following word problem. Round to the nearest cent when necessary. Roni Lockard signed a $28,500 simple discount promissory note at a certain bank. The discount rate was 13%, and the note was made on February 18 (not in a leap-year) for 116 days. (a) What proceeds (in $) will Roni receive on the note? $ (b) What is the maturity date of the note?
Use the ordinary interest method, 360 days, to solve the following word problem. Round to the nearest cent when necessary. Roni Lockard signed a $28,500 simple discount promissory note at a certain bank. The discount rate was 16%, and the note was made on February 18 (not in a leap-year) for 113 days. What proceeds (in $) will Roni receive on the note?$ What is the maturity date of the note?

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