11-7dPractice Exercises
PE 11-1A
Proceeds from notes payable
1. Obj. 1
On May 15, Maynard Co. borrowed cash from Texas Bank by issuing a 60-day note with a face amount of $100,000.
1. Determine the proceeds of the note, assuming that the note carries an interest rate of 6%.
2. Determine the proceeds of the note, assuming that the note is discounted at 6%.
PE 11-1B
Proceeds from notes payable
1. Obj. 1
On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount of $150,000.
1. Determine the proceeds of the note, assuming that the note carries an interest rate of 10%.
2. Determine the proceeds of the note, assuming that the note is discounted at 10%.