Acc422 Intermediate Accounting: P7-11 Descriptions are provided below for six situations involving

Acc422 Intermediate Accounting

P7-11 Discounting a note receivable
Descriptions are provided below for six situations involving notes receivable being discounted at a bank. In each case, the maturity date of the note is December 31, 2011, and the principal and interest are due at maturity. For each, determine the proceeds received from the bank on discounting the note.
Note Face Date of Interest Date Discount
Note Value Note Rate Discounted Rate
1 $50,000 3/31/2011 8% 6/30/2011 10%
2 50,000 3/31/2011 8% 9/30/2011 10%
3 50,000 3/31/2011 8% 9/30/2011 12%
4 80,000 6/30/2011 6% 10/31/2011 10%
5 80,000 6/30/2011 6% 10/31/2011 12%
6 80,000 6/30/2011 6% 11/30/2011 10%
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