Question
Proceeds from Notes Payable On January 26, Vibrant Co. borrowed cash from Conrad Bank by issuing a 60-day note with a face amount of $90,000.
Proceeds from Notes Payable
On January 26, Vibrant Co. borrowed cash from Conrad Bank by issuing a 60-day note with a face amount of $90,000. 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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Accounting
Authors: Charles T. Horngren, Walter T. Harrison
7th Edition
0132439603, 9780132439602
