A company received the following notes during 2012. The notes were discounted on the dates and at the rates indicated:

Requirements
Identify each note by number, compute interest using a 360-day year, and round all interest amounts to the nearest dollar. Explanations are not required.
1. Determine the due date and maturity value of each note.
2. Determine the discount and proceeds from the sale (discounting) of each note.
3. Journalize the discounting of notes (1) and(2).

Transcribed Image Text:

Principal Amount Date Discount Rate Interest Rate Note Date Term Discounted 12,000 11,000 8,000 120 days Sep 10 Jun 20 Oct 15 (1) Jul 1 13% 16% (2) 90 days 6 months Jun 19 10% Jul 15 (3)