Question: On February 1, Tectronic Co. issued a 60-day note with a face amount of $120,000 to Tokai Warehouse Co. for cash. a. Determine the proceeds

On February 1, Tectronic Co. issued a 60-day note with a face amount of $120,000 to Tokai Warehouse Co. for cash.

a. Determine the proceeds of the note, assuming the note carries an interest rate of 9%.

b. Determine the proceeds of the note, assuming the note is discounted at 9%.


Step by Step Solution

★★★★★

3.46 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a 120000 ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

114-B-A-L (1668).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

A company issued 5%, 20-year bonds with a face amount of $100 million. The market yield for bonds of similar risk and maturity is 4%. Interest is paid semiannually. At what price did the bonds sell?

Q:

A U.S. Government bond with a face amount of $10,000 with 13 years to maturity is yielding 5.5%. What is the current selling price?

Q:

A $145,000 mortgage loan carries an interest rate of 5.2% compounded semiannually, a five-year term, and a 30-year amortization period. Payments will be made at the end of every month. a. Calculate...

Q:

On September 1, Klondike Co. issued a 60-day note with a face amount of $100,000 to Arctic Apparel Co. for merchandise inventory. a. Determine the proceeds of the note, assuming the note carries an...

Q:

On November 1, Cats Co. issued a 60-day note with a face amount of $70,000 to Nip Co. for inventory. a. Determine the due date of the note. b. Determine the proceeds of the note, assuming the note...

Q:

HELP I HAVE A HOUR LEFT ON MY FINAL!!! Abbey Co sold merchandise to Gomez Co, on account, $20,300. terms 3/15net 30. The cost of the goods sold is 519,010. Abbey Coued a credit memo for $2,700 for...

Q:

2 7 . ) On August 1 , Batson Company issued a 6 0 - day note with a face amount of $ 9 0 , 6 0 0 to Jergens Company for merchandise inventory. ( Assume a 3 6 0 - day year is used for interest...

Q:

On September 1, Klondike Co. issued a 90-day note with a face amount of \(\$ 120,000\) to Arctic Apparel Co. for merchandise inventory. a. Determine the proceeds of the note, assuming the note...

Q:

On September 1, Klondike Co. issued a 90-day note with a face amount of $120,000 to Arctic Apparel Co. for merchandise inventory. a. Determine the proceeds of the note, assuming the note carries an...

Q:

give me solution step by step On September 1, Rongo Co. issued a 45-day note with a face amount of $80,000 to Simone Co. for merchandise inventory. a. Determine the proceeds of the note, assuming the...

Q:

The constant-growth dividend discount model can be used both for the valuation of companies and for the estimation of the long-term total return of a stock. Assume: $20 = Price of a Stock Today 8% =...

Q:

Choosing what to reward During the late 1970s, Harley-Davidson, the motorcycle manufacturer, was losing money and was very close to bankruptcy. Management believed that one of the problems was low...

Q:

Todd indorses a check, "Pay to Interstate Trucking if they deliver the lumber by May 1 , 2 0 1 2 . " This is Question 1 0 options: a blank indorsement. a qualified indorsement. a restrictive...

Q:

The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 2% Stock, $75 par (100,000 shares authorized, 80,000 shares issued) . ....

Q:

The Bakery by the Bay produces organic bread that is sold by the loaf. Each loaf requires 1/ 2 of a pound of flour. The bakery pays $ 2.00 per pound of the organic flour used in its loaves. The...

Q:

How can an MNE shift profits through the use of transfer pricing? Provide an example.

Q:

An airline manufacturer incurred the following costs last month (in thousands of dollars): a. Depreciation on forklifts........................................................................... $ 60...

Q:

What are some of the financing alternatives available to MNEs that are not available to domestic firms? Give an example.

Q:

1 State three ways in which a cosmetics firm could use market research.

Q:

Data for Cindy Neuer are presented in BE10-5. Prepare the employers journal entries to record (a) Cindys pay for the period and (b) The payment of Cindys wages. Use January 15 for the end of the pay...

Q:

Data for Cindy Neuer are presented in BE10-5. Prepare the employers journal entries to record (a) Cindys pay for the period and (b) The payment of Cindys wages. Use January 15 for the end of the pay...

Q:

Palmer Corporation issued 3,000 7%, 5-year, $1,000 bonds dated January 1, 2012, at face value. Interest is paid each January 1. (a) Prepare the journal entry to record the sale of these bonds on...

Q:

Gateway Communications is considering a project with an initial fixed asset cost of $ 2 . 8 7 2 million which will be depreciated straight - line to a zero book value over the 1 0 - year life of the...

Q:

Which of the following is a goal of working capital management? a.)To meet day to day expenses while minimizing the cost of holding cash b.)To meet accounts payable as quickly as possible c.)To...

Q:

Un Sole Help Save & Exit Sub Consider the following multifactor (APT) model of security returns for a particular stock. Check my work Factor Inflation Industrial production oil prices Factor Beta 1.4...