Question
Proceeds from Notes Payable On January 26, Nova Co. borrowed cash from Conrad Bank by issuing a 30-day note with a face amount of $86,400.
Proceeds from Notes Payable On January 26, Nova Co. borrowed cash from Conrad Bank by issuing a 30-day note with a face amount of $86,400. Assume a 360-day year.
a. Determine the proceeds of the note, assuming the note carries an interest rate of 10%.
b. Determine the proceeds of the note, assuming the note is discounted at 10%.
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Principles Of Financial Accounting
Authors: Jerry J. Weygandt, Lorena Mitrione, Michaela Rankin, Keryn Chalmers, Paul D. Kimmel
3rd Edition
0730302296, 978-0730302292
