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11) A company issues a 60-day, 12% note for $15,000.

Question : 11) A company issues a 60-day, 12% note for $15,000. : 1412215

 

11) A company issues a 60-day, 12% note for $15,000. What is the principal amount of the note?

A) $16,800

B) $15,000

C) $14,700

D) $15,300

 

12) Calculate the interest on a 90-day, 9% note for $36,000. (Use a 360-day year to compute interest.)

A) $720

B) $810

C) $880

D) $460

13) The maturity value of a note is the ________.

A) principal amount minus interest due

B) principal amount plus interest due

C) face amount of the note

D) principal amount times the interest rate

 

14) On October 1, 2015, Ealys Jewelers accepted a 4-month, 12% note for $6,000 in settlement of an overdue account receivable. The company closes its accounts at the year end. Calculate and record the accrued interest on the note at December 31, 2015.

A) $180

B) $160

C) $240

D) $140

 

15) On January 1, Ajax Corp. accepted a one-year note for $50,000 at 5% from one of its customers. When the note matured on December 31, the customer was unable to pay, and the company recorded the dishonor. The amount of the debit in the dishonor entry would be: ________.

A) $47,500

B) $2,500

C) $50,000

D) $52,500

 

16) Which of the following would be included in the entry by the payee to record a dishonored note receivable?

A) a debit to Accounts Receivable

B) a debit to Interest Revenue

C) a debit to Notes Receivable

D) a credit to Interest Expense

17) On April 1, 2015, Banne Services received a 6-month note for $10,000 at 8%. Calculate the amount of interest receivable on maturity.

A) $320

B) $460

C) $800

D) $400

 

18) On October 1, 2015, Android Inc. made a loan to one of its customers. The customer signed a 4-month note for $100,000 at 15%. How much interest revenue did the company record in the year 2015?

A) $1,500

B) $1,250

C) $5,000

D) $3,750

 

19) On October 1, 2015, Android Inc. made a loan to one of its customers. The customer signed a 4-month note for $100,000 at 15%. How much interest revenue did the company record in the year 2016 for this note?

A) $2,150

B) $3,750

C) $1,250

D) $5,000

 

20) On October 1, 2015, Android Inc. made a loan to one of its customers. The customer signed a 4-month note for $100,000 at 15%. Calculate the total interest earned on the note.

A) $5,000

B) $3,750

C) $1,250

D) $15,000

 

 

 

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