Alpine Co., a building construction company, holds a 120-day, 9% note for $80,000, dated July 23, which

Question:

Alpine Co., a building construction company, holds a 120-day, 9% note for $80,000, dated July 23, which was received from a customer on account. On September 21, the note is discounted at the bank at the rate of 12%.
a. Determine the value of the note.
b. Determine the number of days in the discount period.
c. Determine the amount of the discount.
d. Determine the amount of the proceeds.
e. Journalize the entry to record the discounting of the note on September 21.

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...