Question 11.1: Proceeds from Notes Payable On July 1, Bella Salon Company ...

Financial Accounting

Proceeds from Notes Payable

On July 1, Bella Salon Company borrowed cash from Best Bank by issuing a 60-day note with a face amount of $60,000.
a. Determine the proceeds of the note, assuming that the note carries an interest rate of 6%.
b. Determine the proceeds of the note, assuming that the note is discounted at 6%.

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