On May 1, 201X, Marcus Company received a $21,000, 90 day, 10 note from Walker Company dated May 1 On June 20, 201X, Marcus discounted the note at Manchester Bank at a discount rate of 12 1 Calculate the following a Maturity value of the note b Number of days the bank will hold the note until matur...

1 A Maturity Value of the note is 2152500 B Number of days the bank w ...

On May 1, 201X, Marcus Company received a $21,000, 90-day, 10% note from Walker Company dated May

Question:

On May 1, 201X, Marcus Company received a $21,000, 90-day, 10% note from Walker Company dated May 1. On June 20, 201X, Marcus discounted the note at Manchester Bank at a of 12%.
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...