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Hinson 8-3 Factoring and Assigning Accounts Receivable

# Hinson 8-3 Factoring and Assigning Accounts Receivable - 6...

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Student Name: Jamie Hinson Class: Intermediate Accounting I Problem 7-5 1-a) Cash (difference) \$406,400 Finance charge expense (12% X \$780,000) 93,600 Liability - financing arrangement 500,000 1-b) Accounts receivable \$550,000 Liability - financing agreement 11,000 Cash 561,000 2-a) Cash (difference) 425,120 Finance charge expense (12% X [\$780,000 X 80%]) 74,880 Liability - financing agreement 500,000 2-b) Accounts receivable 550,000 Liability - financing agreement 11,000 Cash 561,000 3) Because if a note is purchased in the middle of the fiscal year (July 1st) than there nee to be a note disclosure stating the information regarding the note purchsed and the req Problem 07-08 PROCEEDS RECEIVED Note Face Date of Interest Date Discount Proceeds Note Value Note Rate Discounted Rate Received 1 \$50,000 3/31/2006 8% 6/30/2006 10% \$55,000 2 50,000 3/31/2006 8% 9/30/2006 10% 54,000 3 50,000 3/31/2006 8% 9/30/2006 12% 54,500 4 80,000 6/30/2006

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Unformatted text preview: 6% 10/31/2006 10% 83,733 5 80,000 6/30/2006 6% 10/31/2006 12% 84,000 6 80,000 6/30/2006 6% 11/30/2006 10% 83,067 Note 1 \$50,000 Face amount 2,000 Interest to maturity 52,000 Maturity value 3,000 Discount \$55,000 Cash proceeds Note 2 \$50,000 Face amount 3,000 Interest to maturity 53,000 Maturity value 1,000 Discount \$54,000 Cash proceeds Note 3 \$50,000 Face amount 3,000 Interest to maturity 53,000 Maturity value 1,500 Discount \$54,500 Cash proceeds Note 4 \$80,000 Face amount 2,400 Interest to maturity 82,400 Maturity value 1,333 Discount \$83,733 Cash proceeds Note 5 \$80,000 Face amount 2,400 Interest to maturity 82,400 Maturity value 1,600 Discount \$84,000 Cash proceeds Note 6 \$80,000 Face amount 2,400 Interest to maturity 82,400 Maturity value 667 Discount \$83,067 Cash proceeds eds quirements....
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Hinson 8-3 Factoring and Assigning Accounts Receivable - 6...

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