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April 15 Cash $1,004.23 Notes Receivable $19.10 $1,000.00 Interest Income 4.23 discounted Bentley co. note dates April 3 @ First Bank discount rate 14 %
April 15 Cash $1,004.23 Notes Receivable $19.10 $1,000.00 Interest Income 4.23 discounted Bentley co. note dates April 3 @ First Bank discount rate 14 % ( $1000 * 0.14 * 60/360 = 23.33 interest) ($1000 +23 = 1023 maturity value) ($1023 * 0.14*48/360 = 19.10 discount) ($1023 - $19.10 = 1003.9 proceeds) ($1003.9 - $1000 = 3.9 interest income)
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Fundamental Accounting Principles
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
20th Edition
1259157148, 78110874, 9780077616212, 978-1259157141, 77616219, 978-0078110870
