On May 1, 202X, Magdalena Company received a $30,000, 90-day, 9% note from Quincy Company dated May 1. On June 20, 202X, Magdalena discounted the note at Pittsfield 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 maturity date
c. Bank discount
d. Proceeds
2. Journalize the entry to record the proceeds.