Vision Importing Company engaged in the following transactions involving promissory notes:
July 2 Sold engines to Morgan Company for $180,000 in exchange for a 90-day, 12 percent promissory note.
15 Sold engines to Level Company for $96,000 in exchange for a 60-day, 13 percent note.
30 Sold engines to Level Company for $90,000 in exchange for a 90-day, 11 percent note.
1. For each of the notes, determine the (a) maturity date, (b) interest on the note, and (c) maturity value. (Round to the nearest cent.)
2. Assume that the fiscal year for Vision Importing ends on August 31. How much interest income should be recorded on that date? (Round to the nearest cent.)
3. What are the effects of the transactions in July on cash flows for the year ended August 31?