On June 8, Alton Co. issued an $80,042, 11%, 120-day note payable to Seller Co. Assuming...

Question

Question

On June 8, Alton Co. issued an $80,042, 11%, 120-day note payable to Seller Co. Assuming a 360-day year for your calculations

business accounting

Answer 1

Answer #1

Maturity value

= Principal + Interest

= 80,042 + (80,042*11%*120/360)

= 80,042 + 2935

= 82,977

Option D is the answer

Answer 2

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