Question: A company received the following notes during 2012. The notes were discounted on the dates and at the rates indicated: Requirements Identify each note by

A company received the following notes during 2012. The notes were discounted on the dates and at the rates indicated:

Requirements
Identify each note by number, compute interest using a 360-day year, and round all interest amounts to the nearest dollar. Explanations are not required.
1. Determine the due date and maturity value of each note.
2. Determine the discount and proceeds from the sale (discounting) of each note.
3. Journalize the discounting of notes (1) and(2).

Principal Amount Discount Rate Interest Rate Date Discounted Note Date Term Aug 15 Aug 30 Oct 15 13,000 10,000 4,000 120 days Jun 1 (1) Aug 19 (2) (3) 10% 13% 13% 90 days 6 months 11% 7% Jul 15

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