Question: On May 10 Morris Company received a 90 day 6 5 percent

On May 10, Morris Company received a 90-day, 6.5 percent note for $ 7,500, dated May 10, for merchandise sold to Baar Company. Morris Company endorsed the note in favor of its bank on May 28. The bank discounted the note at 7 percent, paying the proceeds to Morris Company. Determine the following facts:
a. Number of days Morris Company held the note
b. Number of days in the discount period
c. Face value
d. Maturity value
e. Discount
f. Proceeds
g. Interest income or expense recorded by the payee (Morris Company)

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  • CreatedOctober 21, 2014
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