On May 1, 201X, Bird Company received a $25,000, 65 day, 9 (35 min) note from Robertson Company dated May 1 On June 20, 201X, Bird discounted the note at Acorn Bank at a discount rate of 10 50 1 Calculate the following a Maturity value of the note b Number of days the bank will hold the note until ...

A Maturity Value of the note is 2540625 25000 25000 x 9 x 65360 2540625 B Number of da ...

On May 1, 201X, Bird Company received a $25,000, 65-day, 9% (35 min) note from Robertson Company

Question:

On May 1, 201X, Bird Company received a $25,000, 65-day, 9% (35 min) note from Robertson Company dated May 1. On June 20, 201X, Bird discounted the note at Acorn Bank at a of 10.50%.
1. Calculate the following:
a. value of the note
b. Number of days the bank will hold the note until date
c. Bank discount
d. Proceeds
2. Journalize the entry to record the proceeds.
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...