Notes and Loans Receivable c8 Valix

NOTES AND LOANS RECEIVABLE

Roth Company received from a customer a one-year, P500,000 note bearing annual interest interest of 8%. fter holding holding the note for si! months, Roth discounted discounted the note at Regional "an# at an effective interest rate of $0% $. hat amount of cash did Roth receive from the ban#& a. 5'0,000 b. 5(),8$0 c. 5$),000 d. '*5,()8 +n uly $, (00, ee Company sold goods in e!change for P(,000,000, 8 /  month, noninter noninterest-bea est-bearing ring note receivable. receivable. t the time of the sale, the notes mar#et rate of interest 1as $(%. (. hat hat am amoun ountt did did ee ee rece receiv ive e 1hen 1hen it disc discou ount nted ed the the note note at $0% $0% on 2eptember $, (00& a. $,*'0,000 b. $,*)8,000 c. $,*00,000 d. $,880,000 pe! Company accepted from a customer P$,000,000 face amount, -month, 8% note date pril pril $5, (00. +n the same date date pe! discounted discounted the note at 3nion "an# at a $0% discount disco unt rate. ). 4o1 much cash should pe! receive from the ban# on pril $5, (00& a. $,0'0,000 b. **0,000 c. *88,000 d. *(,000 +n une une )0, )0, (00 (00,, Ray Ray Comp Compan any y disc discou ount nted ed at the the ban# ban# a cust custom omer ers s P,000, P,000,000 000,, -month -month,, $0% note note receiv receivabl able e dated dated pril pril )0, (00. (00. 6he ban# discounted the note at $(%. '. Rays proceeds from this discounted disco unted note amounted to a. 5,'0,000 b. 5,0,000 c. ,0'8,000 d. ,$',000 +n uly uly $, (005, (005, 7ay Corporat Corporation ion sold euipm euipment ent to 9ando 9ando Compan Company y for P$,000,000. 7ay accepted a $0% note note receivable for the entire sales price. 6his note is payable payable in t1o eual installments installments of P500,000 plus accrued accrued interest on :ecember )$, (005 and :ecember )$, (00. +n uly $, (00, 7ay discounted the note at a ban# at an interest rate o f $(% 5. 7ays proceeds from the discounted note 1ere a. '8',000 b. '*),500 c. 50),500 d. 5$,000 Rand Company accepted from a customer a P',000,000, *0-day $(% interest bearing note dated ugust )$, (00. +n 2eptember )0, (00, Rand discounted the note note at the pe! 2tate 2tate "an# at $5%. 4o1eve 4o1ever, r, the procee proceeds ds 1ere not received until +ctober $, (00. . ;n the 2eptember )0,(00 balance sheet, the amount of receivable from the ban# based on a )0-day year, includes accrued interest revenue of  a. $,000 b. (0,000 c. )0,000 d. '0,000

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