On May 15, Franklin Co. borrowed cash from Dakota Bank by issuing a 90-day note with a face amount of $180,000. a. Determine the proceeds of the note, assuming that the note carries an interest rate of 8%. b. Determine the proceeds of the note, assuming that the note is discounted at 8%.

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A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

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A: The note payable is the liability for the business which is to be paid on due date with interest.

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A: The question is based on the concept of discounting notes. Notes are a debt financial arrangement…

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A: SOLUTION- ACCOUNTS RECEIVABLE   IS A BALANCE  OF MONEY DUE TO A FIRM FOR GOOD OR SERVICES DELIVERED…

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A: Discounting seems to be the act of transferring or surrendering a customer's notes receivable to a…

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A: From March 1 to April 30 = 60 days Interest is paid on the funds used by the business to generate…

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A: Asper the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…

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A: Simple Interest: The simple interest on a particular amount is calculated as the product of interest…

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A: A written promise to receive a sum of money at the pre determined future date is referred to as note…

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A: Mature date = 30 Jan

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A: Interest is charged on accrual basis

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A: Borrowed amount=$5000Discount rate=7%Time period=90days

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A: Working note: Computation of initial recognition value of note payable:

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

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