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Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

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Section
BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Proceeds from notes payable

On May 15, Maynard Co. borrowed cash from Texas Bank by issuing a 60-day note with a face amount of $100,000.

  1. a. Determine the proceeds of the note, assuming that the note carries an interest rate of 6%.
  2. b. Determine the proceeds of the note, assuming that the note is discounted at 6%.

a.

To determine

Notes Payable: Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To Determine: The proceeds amount of the note

Explanation

In this case, the note is not discounted...

b.

To determine
The proceeds amount of the note

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