West Palm Company engaged in the following transactions involving
West Palm Company engaged in the following transactions involving promissory notes
Subject: Business   / Accounting
Question
West Palm Company engaged in the following transactions involving promissory notes:
May 3Â Â Â Â Â Â Â Â Â Sold engines to Mittal Company for $120,000 in exchange for a 90-day, 12 percent promissory note.
16Â Â Â Â Â Â Â Â Â Sold engines to Tata Company for $64,000 in exchange for a 60-day, 13 percent note.
31Â Â Â Â Â Â Â Â Â Sold engines to Arsenal Company for $60,000 in exchange for a 90-day, 11 percent note.
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For each of the notes, determine the (a)maturity date, (b)intereston the note, and (c) maturity value. Round your answers to the nearest cent.
May 3Â Â Â May 16Â Â Â May 31
Maturity date:Â Â Â SelectJuly 15August 1August 29Item 1Â Â Â SelectJuly 15August 1August 29Item 2Â Â Â SelectJuly 15August 1August 29Item 3
Interest at maturity:Â Â Â $ Â Â Â $ Â Â Â $
Maturity value:Â Â Â $ Â Â Â $ Â Â Â $
Assume that the fiscal year for West Palm ends on June 30. How much interest income should be recorded on that date? Round your answer to the nearest cent.$
What are the effects of the transactions in May oncashflows for the year ended June 30?
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