Suncare Corporation installs switching systems and receives its pay in the form of notes receivable. It installed

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Suncare Corporation installs switching systems and receives its pay in the form of notes receivable. It installed a system for the city of Edson, Alberta, receiving a nine-month, 10 percent, $200,000 note receivable on May 31, 2014. To obtain cash quickly, Suncare discounted the note with HSBC on June 30, 2014. The bank charged a discount rate of 11 percent.
Compute Suncare's cash proceeds from discounting the note. Follow the five-step procedure outlined in Exhibit 9-1A on page 547. Round to the nearest dollar.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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Accounting Volume 1

ISBN: 978-0132690096

9th Canadian edition

Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood

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