Determine the due date and the amount of interest due at maturity on the following notes: Date of note A. January 10* B . March 19 C. June 5 D. September 8 E. November 20 * February 2016 has 28 days Face amount A.$40,000 B. 18,000 C. 90,000 D. 36,000 E. $27,000 Interest rate A. 5% B. 8% C. 7% D. 3% E. 4% Term of note A. 90 days B. 180 days C. 30 days D. 90 days E. 60 days Assume 360 days in a year one commuting the interest. Note Due date. Interest (A) __________ $ (B) ___________ $ (C) ___________ $ (D) ____________ $ (E) ___________ $

Determine the due date and the amount of interest due at maturity on the following notes: Date of note A. January 10* B . March 19 C. June 5 D. September 8 E. November 20 * February 2016 has 28 days Face amount A.$40,000 B. 18,000 C. 90,000 D. 36,000 E. $27,000 Interest rate A. 5% B. 8% C. 7% D. 3% E. 4% Term of note A. 90 days B. 180 days C. 30 days D. 90 days E. 60 days Assume 360 days in a year one commuting the interest. Note Due date. Interest (A) ____ $ (B) _ $ (C) _ $ (D) $ (E) _____ $

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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Question

Determine due date and interest on notes

Determine the due date and the amount of interest due at maturity on the following notes:

Date of note

A. January 10*

B . March 19

C. June 5

D. September 8

E. November 20

* February 2016 has 28 days

Face amount

A.$40,000

B. 18,000

C. 90,000

D. 36,000

E. $27,000

Interest rate

A. 5%

B. 8%

C. 7%

D. 3%

E. 4%

Term of note

A. 90 days

B. 180 days

C. 30 days

D. 90 days

E. 60 days

Assume 360 days in a year one commuting the interest.

Note Due date. Interest

(A) __________ $

(B) ___________ $

(D) ____________ $

(E) ___________ $

Expert Solution

Step 1

Interest = Face amount x Interest rate x (Term of note / 360)

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