Martin Manufacturing Held Three Interest-Bearing Notes During 2018 and 2019

question 113

Essay

Martin Manufacturing held three interest-bearing notes during 2018 and 2019:
Note 1 issued September 25, 2018, $6,000, 10%, 60 days
Note 2 issued November 20, 2018, $12,000, 12%, 90 days
Note 3 issued December 30, 2018, $4,000, 9%, 30 days
Compute for each note:
a)the maturity date
b)the maturity value
c)interest revenue to be reported on the 2016 income statement (round to the nearest cent)

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Definitions:

Hermann Ebbinghaus

A German psychologist known for his pioneering work in the study of memory, including the forgetting curve and the spacing effect.

Minutes

The written record of what was discussed and decided in a meeting.

Hours

Units of time equivalent to 60 minutes, commonly used to measure the duration of events or the passage of time.

Alzheimer's Disease

A progressive neurodegenerative disorder that causes memory loss, cognitive decline, and ultimately, loss of ability to perform everyday activities.