Question : 11) Using a 360-day year, the maturity value of a : 1232318

 

11) Using a 360-day year, the maturity value of a 90-day note for $3,500 at 8% annual interest is:

A) $3,780.

B) $3,710.

C) $3,570.

D) $3,500.

12) Using a 360-day year, the maturity value of a 60-day note for $1,500 at 7% annual interest is (rounded to the nearest cent):

A) $1,605.00.

B) $1,482.50.

C) $1,517.50.

D) $ 17.50.

13) Using a 365-day year, the maturity value of a 180-day note for $2,700 at 9% annual interest is (rounded to the nearest cent):

A) $2,943.00.

B) $2,821.50.

C) $2,819.84.

D) $ 119.84.

14) A 135-day note issued on May 17 will mature on:

A) September 28.

B) September 29.

C) September 30.

D) October 1.

15) An 83-day note issued on November 13, 2012 will mature on:

A) February 2, 2013.

B) February 3, 2013.

C) February 4, 2013.

D) February 5, 2013.

16) On September 1, 2012, Juno Corp. lent $2,400 to Bill Askins on a 6-month 8% promissory note. The journal entry to record the note for Juno Corp. would be to:

A) debit Note Receivable/Tim, $2,400; credit Cash, $2,400.

B) debit Note Receivable/Tim, $2,496; credit Cash, $2,496.

C) debit Note Receivable/Tim, $96; credit Interest Income, $96.

D) debit Cash, $2,400; credit Note Payable/Tim, $2,400.

17) On September 1, 2012, Juno Corp. lent $2,400 to Bill Askins on a 6-month 8% promissory note. The amount of interest to be accrued on December 31 will be:

A) $192.

B) $128.

C) $ 96.

D) $ 64.

18) On March 1, 2012, Juno Corp. lent $3,500 to Bill Askins on a 1-year 6% promissory note. The amount of interest to be accrued on December 31 will be:

A) $210.00.

B) $175.00.

C) $157.50.

D) $140.00.

19) On April 9, Sarah paid $3,568 to Advanced Auto to fulfill her promissory note agreement. Of the $3,568, $400 is interest. The journal entry Advanced Auto will record is to:

A) debit Cash, $3,568; credit Note Receivable/Sarah, $3,568.

B) debit Cash, $3,568; credit Note Receivable/Sarah, $3,168; credit Interest Income, $400.

C) debit Note Receivable/Sarah, $3,568; credit Cash $3,168; credit Interest Income, $400.

D) debit Note Receivable/Sarah, $3,568; credit Cash $3,568.

20) On April 23, Jack paid $4,750 to Allied, Inc. to fulfill his promissory note agreement. Of the $4,750, $750 is interest. The journal entry Allied, Inc. will record is to:

A) debit Cash, $4,750; credit Note Receivable/Jack, $4,750.

B) debit Cash, $4,750; credit Note Receivable/Jack, $4,000; credit Interest Income, $750.

C) debit Note Receivable/Jack, $4,750; credit Cash $4,700; credit Interest Income $750.

D) debit Note Receivable/Lauren, $4,750; credit Cash $4,750.

21) Maverick, Inc. converted a $4,000 account receivable from Roberto to a 75-day, 8% note receivable. The maturity value (assume a 360-day year) that will be due from Roberto in 75 days (round to nearest dollar) is:

A) $4,000.

B) $4,067.

C) $4,320.

D) some other number.

22) ACME Corporation lent $25,000 to Hastings, Inc. for 75 days at 7% interest on November 22, 2012. How much interest will have accrued to ACME Corporation on December 31, 2012, assuming a 360-day year?

A) $364.58

B) $189.58

C) $175.00

D) Some other number

23) A note is signed on April 15, 2013 at 9% for 216 days. The maturity date will be:

A) November 15.

B) November 16.

C) November 17.

D) November 18.

24) Using a 365-day year, the maturity value of a 55-day, 7% note for $23,000 rounded to the nearest cent is:

A) $23,000.00.

B) $23,242.60.

C) $23,245.97.

D) $24,610.00.

25) A customer’s written promise to pay an amount of money to a business with interest is a(n) ________ of the business.

A) account receivable

B) account payable

C) note receivable

D) note payable