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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This note was uploaded on 09/08/2010 for the course ACCOUNTING 320 taught by Professor Hickman during the Spring '10 term at Heidelberg.

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

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