D. Stoner Co., a building construction company, holds a 120-day, 9% note for $60,000, dated August 7,

Question:

D. Stoner Co., a building construction company, holds a 120-day, 9% note for $60,000, dated August 7, which was received from a customer on account. On October 6, the note is discounted at the bank at the rate of 12%.

b. Determine the number of days in the discount period.

c. Determine the amount of the discount.

d. Determine the amount of the proceeds.

e. Journalize the entry to record the discounting of the note on October 6.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting

ISBN: 978-0324662962

23rd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

See More Books

Question Posted: Aug 27, 2011 11:11 AM

See More Questions

Define a non-interest-bearing note that is discounted at a bank at a specific rate. How are the proceeds computed for a non-interest-bearing note?
Receiving cash from a customer on account will a. Increase total assets. b. Have no effect on total assets. c. Increase stockholders equity. d. Decrease liabilities.
On August 1, 2015, Hampton Construction received a 9 percent, six-month note receivable from Dusty Roads, one of Hampton Construction's problem credit customers. Roads had owed $36,000 on an...
The value of a dirt bike decreases by 25% each year. If you purchased this dirt bike today for $500, to the nearest dollar how much would the bike be worth 5 years later?
Walgreens Boots Alliance, Inc. and Subsidiaries' (the company created with the combination of Walgreens and Boots Alliance) Form 10-K includes the following in the note that summarizes its accounting...
If necessary, create a new project named Introductory20 Project and save it in the Cpp8\Chap14 folder. Also create a new source file named Introductory20.cpp. Create a program that saves prices in a...
Define the functional currency, and identify factors suggesting the functional currency. AppendixLO1
Match the selected sections of IASB-proposed financial statements (letters) with their respective components (numbers): a. Statement of comprehensive income-business b. Statement of comprehensive...
! Required information Problem 15-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 [The following information applies to the questions displayed below.) Marcelino Co.'s...
Greenville has provided the following information from its General Fund Revenues and Appropriations/ Expenditure/Encumbrances subsidiary ledgers for the fiscal year ended. Assume the beginning fund...
List any errors you can find in the following partial balancesheet: Jennett Company Balance Sheet December 31, 2010 Assets Current assets: Cash Notes receivable Less interest receivable $ 95,000...
Journalize the following transactions in the accounts of Zion Theater Productions: Mar. 1. Received a $40,000, 90-day, 8% note dated March 1 from Gymboree Company on account. 31. Discounted the note...
The following transactions of Emergency Pharmacies occurred during 2014 and 2015: 2014 Mar 1 Borrowed $360,000 from Lessburg Bank. The six-year, 10% note requires payments due annually, on March 1....
During the COVID-19 19 pandemic, 50 patients over the age of 60 were admitted to a hospital, where 25 patients were completely cured without needing to enter the intensive care rooms. The ages of 25...
In Exercises 5-20, find the range, variance, and standard deviation for the given sample data. Include appropriate units (such as "minutes") in your results. (The same data were used in Section 3-1,...
00 0.1 11 points eBook Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Selling price per unit Xtreme...
Computing Unit Cost Comacho Chemical Co. recorded costs for the month of $18,900 for materials, $44,100 for labor, and $26.250 for factory overhead. There was no beginning work in process, 8.000...
Problem Joe Fox is the manager of the Gear division and plans to submit a proposal for an expanded production area. Joe has projected various conditions for revenues and expense for the expansion,...
A gain or loss on the sale of a portion of its investment by a parent company that records its investment using the cost method during a fiscal period consists of three elements. What are they? LO3
7. Baladna wants to analyze process that includes delivery by suppliers, production inside the company, transportation to to its customers and information systems. Then it also wants to find out...
Define the following terms: depreciation, net investment, and investment spending.
The following table summarizes the rules of debit and credit. For each of the items (a) through (n), indicate whether the proper answer is a debit or acredit. Normal Balance Increase Decrease Balance...
Malta Co. is a travel agency. The nine transactions recorded by Malta during February 2006, its first month of operations, are indicated in the following T accounts: Indicate for each debit and each...
Based upon the T accounts in Exercise 48, prepare the nine journal entries from which the postings were made.
Questien It Calraluta bae neark yoe cen atforal to berren
In calculating the net present value of a proposed project, the cash flows of the project should include a.) amortization of goodwill b.) interest expenses paid to bondholders c.) extra working...
If Yolanda's insurance company cancels her fire insurance policy after 204 days, how much of the $682.00 annual premium will she receive as a refund (in $)? (Round you answer to the nearest cent.) $

D. Stoner Co., a building construction company, holds a 120-day, 9% note for $60,000, dated August 7,

Question:

Step by Step Answer:

b c d e Determining August Septemb...View the full answer

Accounting

Students also viewed these Accounting questions