21) If the interest rate on a note is 12.5% and the principal was $50,000, what is the maturity value of the note, if the term of the note is 7 months? (Round to the nearest dollar.)
A) $50,000
B) $53,646
C) $56,250
D) $57,230
22) On December 31, 2015, the lender on a $5,000, 120-day, 10% note dated November 5, 2015, will recognize: (Use a 365 day year and round to the nearest dollar.)
A) interest receivable, $164.
B) interest receivable, $77.
C) interest payable, $164.
D) interest payable, $77.
23) For each of the following independent notes, determine: (1) the due date of the note, (2) the number of days of accrued interest assuming a fiscal year end of September 30, 2014 and (3) the amount of interest expense for each note at September 30, 2014. Use 365 days for a year.
Note
|
Principal
|
Interest Rate
|
Term
|
Start Date
|
Due Date
|
Number of Days of Accrued Interest
|
1
|
$12,000
|
10%
|
120 days
|
7/1/2014
|
|
|
2
|
$50,000
|
8%
|
9 months
|
4/1/2014
|
|
|
3
|
$15,000
|
3.33%
|
180 days
|
8/15/2014
|
|
|
4
|
$60,000
|
18%
|
1 year
|
1/1/2014
|
|
|
5
|
$90,000
|
6%
|
60 days
|
9/1/2014
|
|
|
24) The Watertown Bank lent Sandy's Pastry Store $40,000 on a sixty day, 7% note dated June 10th. Use a 365 day year when calculating interest and round all amounts to the nearest dollar. The fiscal year end of the bank is June 30.
Required:
1.Determine the due date of the note.
2.Determine the maturity value of the note.
3.Prepare the journal entries made by the bank. Omit explanations.