On May 1, 202X, Lake Company received a $26,000, 90-day, 5% note from Walker Company dated May 1. On June 20, 202X, Lake discounted the note at Reading Bank at a discount rate of 8%.
1. Calculate the following:
a. Maturity value of the note
b. Number of days the bank will hold the note until maturity date
c. Bank discount
d. Proceeds
2. Journalize the entry to record the proceeds.