Question
Proceeds from Notes Payable On January 26, Nova Co. borrowed cash from Conrad Bank by issuing a 120-day note with a face amount of $51,600.
Proceeds from Notes Payable
On January 26, Nova Co. borrowed cash from Conrad Bank by issuing a 120-day note with a face amount of $51,600. Assume a 360-day year.
a. Determine the proceeds of the note, assuming the note carries an interest rate of 8%. $
b. Determine the proceeds of the note, assuming the note is discounted at 8%.
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Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
23rd Edition
978-0324662962
