Alpine Co., a building construction company, holds a 120-day, 9% note for $80,000, dated July 23, which
Question:
a. Determine the maturity 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...
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Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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