Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Textbook Question
Chapter 6, Problem 18E
Computing the Proceeds from the Sale of Notes Receivable Below are several customer notes receivable that were sold without recourse.
- 1. An $8,000, 60-day, non-interest-bearing note sold after 15 days at 12%.
- 2. A $9,000, 12%, 60-day note sold alter 30 days at 14%
- 3. A $6,000, 10%, 90-day note sold after 30 days at 12%
- 4. A $10,000, 12%, 120-day note sold after 45 days at 15%
Determine the proceeds from each of the preceding sales of customer notes receivable. (Assume a 360-day year.)
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Computing the Proceeds from the Sale of Notes Receivable
Below are several customer notes receivable that were sold without recourse.
1. An $8,000, 60-day, non-interest-bearing note sold after 15 days at 12%.
2. A $10,000, 12%, 60-day note sold after 30 days at 14%.
3. A $4,000, 10%, 90-day note sold after 30 days at 12%.
4. A $12,000, 12%, 120-day note sold after 45 days at 15%.
Required:
Determine the proceeds from each of the preceding sales of customer notes receivable. (Assume a
360-day year.) Do not round intermediate calculations. When required, round your final answers to the
nearest dollar. If an amount is zero, enter "0".
Note 1
Note 2
Note 3
Note 4
Face Value of
Note
Interest to
maturity
Maturity Value
Discount
Proceeds
do 12 (Computing the Proceeds from Discounted Notes)
Below are several customer notes.
1. An $8,000, 12%, 60-day, non-interest-bearing note discounted after 15 days at 12%
2. A $9,000, 12%, 60-day, note discounted after 30 days at 14%.
3. A $6,000, 10%, 90-day, note discounted after 30 days at 12%.
4. A $10,000, 12%, 120-day, note discounted after 45 days at 15%.
Required
Determine the Proceeds from each of the preceding discounted customer notes.
Note Receivable
Maggiano Supply Company received a 120-day, 6% note for $420,000, dated June 12, from a customer on account. Assume 360 days in a year.
a. Determine the due date of the note.
b. Determine the maturity value of the note.$
c. Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank.
Cash
Notes Receivable
Interest Revenue
Chapter 6 Solutions
Intermediate Accounting: Reporting And Analysis
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