Question
Proceeds from Notes Payable On May 15, Maynard Co. borrowed cash from Texas Bank by issuing a 60-day note with a face amount of $100,000.
Proceeds from Notes Payable
On May 15, Maynard Co. borrowed cash from Texas Bank by issuing a 60-day note with a face amount of $100,000. Assume a 360-day year.
Required:
a. Determine the proceeds of the note, assuming that the note carries an interest rate of 6%. $
b. Determine the proceeds of the note, assuming that the note is discounted at 6%. $
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Managerial Accounting Tools For Business Decision Making
Authors: Weygandt, Kimmel, Kieso
4th Edition
0470478535, 978-0470478530
