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. Assume a 360-day year.
Required:
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%.

Answers

Answer 1

Answer:

A. $100,000

B.$99,000

Explanation:

A. Calculation for Determining the proceeds of the note, assuming that the note carries an interest rate of 6%

Based on the information given the note is not discounted which means the face value is equal to the proceeds of $100,000

Hence,

Face value = Proceeds of $100,000

Therefore the proceeds of the note, assuming that the note carries an interest rate of 6% will be $100,000

b. Calculation for Determining the proceeds of the note, assuming the note is discounted at 6%

First step is to find the discount

Using this formula

Discount = Face value amount x Discount rate x (term of note / 360)

Let plug in the formula

Discount= $100,000 x .06 x 60/360

Discount =$360,000/360

Discount= $1,000

Second step is to calculate for the Proceeds

Calculation for the Proceeds

Using this formula

Proceeds = face amount – discount

Let plug in the formula

Proceeds=$100,000 – $1,000

Proceeds= $99,000

Therefore the proceeds of the note, assuming that the note is discounted at 6% will be $99,000

Related Questions

Checker Clackers, Inc. manufactures clackers. Checker’s transactions and accounts included the following during June: Raw materials inventory, beginning $1,200 Raw materials inventory, ending 1,400 Work in process inventory, beginning 7,100 Work in process inventory, ending 6,800 Raw materials acquired 27,800 Cost of direct materials used in production 27,600 Sales commissions to sell clackers 2,100 Direct labor cost 20,000 Total manufacturing overhead 28,900 How much is cost of goods manufactured for June?
Suppose that on August 14, 2019, an antique woven rug handmade in Canada is priced at CAD 1,100. The approximate U.S. dollar price of the rug would be
Define and explain SMART?
A construction management company is examining its cash flow requirements for the next 7 years. The company expects to replace software and infield computing equipment at various times over a 7-year planning period. Specifically, the company expects to spend $6000 one year from now, $9000 three years from now, and $10,000 each year in years 6 through 10. What is the future worth in year 10 of the planned expenditures, at an interest rate of 12% per year?
On December 31, 2021, Interlink Communications issued 5% stated rate bonds with a face amount of $113 million. The bonds mature on December 31, 2051. Interest is payable annually on each December 31, beginning in 2022. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $). Determine the price of the bonds on December 31, 2021, assuming that the market rate of interest for similar bonds was 6%.Table values are based on:n = 30i = 6%Cash Flow Amount Present ValueInterest $111,300,000 $74,454,240Principal $100,000,000 $13,137,000Price of bonds $87,591,240

An Engel curve:________. A. slopes upward for normal goods and downward for inferior goods.
B. slopes upward for inferior goods and downward for normal goods.
C. slopes downward for both normal and inferior goods.
D. slopes upward for both normal and inferior goods.

Answers

Answer:

A. slopes upward for normal goods and downward for inferior goods.

Explanation:

In the case of Engle curve it plots the relationship between income and demand for a good.

In the case of the normal goods, as the income rises the demand also rises while on the other hand in the case of inferior goods, the income rises the demand false

So it sloped upward for the normal goods and slop downwards for the inferior goods

Final answer:

An Engel curve shows the relationship between the quantity of a good consumed and a consumer's income. It slopes upward for normal goods and downward for inferior goods.

Explanation:

An Engel curve shows the relationship between the quantity of a good consumed and a consumer's income. It helps us understand how the demand for a particular good changes as income levels vary.

The correct answer to the question is A. An Engel curve slopes upward for normal goods and downward for inferior goods. This means that as income increases, the demand for normal goods also increases, while the demand for inferior goods decreases.

For example, if someone's income increases, they may choose to consume more high-quality goods like organic food instead of cheaper alternatives. This would result in an upward-sloping Engel curve for organic food, indicating that it is a normal good.

Learn more about Engel curve here:

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A customer call center is evaluating customer satisfaction surveys to identify the most prevalent quality problems in their process. Specific customer complaints have been analyzed and grouped into eight different categories. Every instance of a complaint adds to the count in its category. Which Six Sigma analytical tool would be most helpful to management here?

Answers

Pareto chart is the Sigma Analytical tool which is used for management.

Explanation:

It is a chart or a graph that is used to represent defects and their cumulative so that analyses can indicate areas that need improvements or changes. It also indicates the statistical occurrence of these defects and their impact. It can be applied in different areas that deals with data and data analysis such as communicating data with others and where there are many problems but one wishes to focus on the most significant.

Specifically to the question the problems have been identified and isolated, therefore this tool can be used to analyse data of the already identified problems, the frequency of occurrence and causes of these defects.

Which one of the following statements is correct? a. Book values should always be given precedence over market values.
b. Financial statements are frequently the basis used for performance evaluations.
c. Historical information has no value when predicting the future.
d. Potential lenders place little value on financial statement information.
e. Reviewing financial information over time has very limited value.

Answers

Answer:

b. Financial statements are frequently the basis used for performance evaluations.

Explanation:

The financial statements are the accounting reports of an organization, through these documents it is possible to analyze what is the financial situation of a company in the internal and external environment, what are its greatest strengths and weaknesses.

They are instruments for evaluating organizational performance because they provide essential information about the general accounting situation of a company, which ensures greater reliability for a manager to make a decision directed to correct a problem or strategic implementation to achieve a certain result. It also allows stakeholders to analyze essential data and information when deciding to invest or do business with a particular company.

Ivanhoe Electronics reported the following information at its annual meetings: The company had cash and marketable securities worth $1,235,455, accounts payables worth $4,159,357, inventory of $7,145,200, accounts receivables of $3,489,700, short-term notes payable worth $1,138,700, and other current assets of $121,455. What is the company's net working capital

Answers

Answer:

The answer is $6,693,753

Explanation:

Net Working Capital = current assets - current liabilities

Current assets:

Cash and marketable securities

Inventory

Accounts receivable

Other current assets

$1,235,455 + $7,145,200 + $3,489,700 + $121,455

Total current assets = $11,991,810

Current liabilities:

Accounts payable = $4,159,357

Notes payable = $1,138,700

Total current liabilities = $5,298,057

Net working capital

= $11,991,810 - $5,298,057

= $6,693,753

Last month, Price Company purchased supplies on account, $5,000. Today, Price Company pays the amount that is owed.Required: What is the effect of this transaction on individual asset accounts, individual liability accounts, the Capital Stock account, and the Retained Earnings account?

Check all that apply.

An asset account increases. An asset account decreases.

A liability account increases. A liability account decreases.

Capital Stock increases. Capital Stock decreases.

Retained Earnings increase. Retained Earnings decrease.

Answers

Answer:

Asset Account is decreased.

Liability Account is also decreased.

No effects on Capital Stock.

No effects on Retained Earnings.

Explanation:

Asset Account is decreased by $5000 because Cash is paid for the purchases made on account last month.

Liability Account is decreased by $5000 because accounts payable for the purchases made In the last month is now paid.

This transaction will have no effects on Capital Stock Account and Retained Earnings Account.

Potential effects of departmental performance reports on employee behavior include all of the following except: Including indirect expenses can lead to a manager being more careful in using service department's costs. Using budgeted service department costs insures that operating departments are not held responsible for excessive service department costs. Including uncontrollable costs can serve to improve a manager's morale.

Answers

Potential effects of departmental performance reports on employee behavior except including uncontrollable costs served to improve manager's morale.

Explanation:

Performance management plays an important role to keep a proper record of all the works that are being performed in a company .
A proper performance management also shows an important effect on the behavior of the employees.
If the employees are boosted properly by the managers they will increase the productivity .
This will help the company to earn profits. Departmental performance keep record of all the expenses that are being done during the production process . It also help the manager to gain information and can adopt proper strategy to reduce expenses.

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