EX 9-19 Determine due date and interest on notes

Determine the due date and the amount of interest due at maturity on the following notes dated in 2014:


Date of Note Face Amount Interest Rate Term of Note
a. January 22 $55,000 8% 90 days
b. March 9 36,000 5 60 days
c. June 15 78,000 4 45 days
d. September 4 13,800 7 60 days
e. October 1 58,000 6 120 days




Answer:



Due Date
a. Apr. 22
Interest
$1,100 [$55,000 × 0.08 × (90/360)]
b. May 8 300 [$36,000 × 0.05 × (60/360)]
c. July 30 390 [$78,000 × 0.04 × (45/360)]
d. Nov. 3 161 [$13,800 × 0.07 × (60/360)]
e. Jan. 29 1,160 [$58,000 × 0.06 × (120/360)]