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Wayne Company Received Proceeds of $145,920 from Discounting a $152,000

Question 125

Essay

Wayne Company received proceeds of $145,920 from discounting a $152,000, one year, discount note at Gotham Bank.
a) What discount rate did the bank use?
b) Prepare the journal entry to record the proceeds of the loan.

Correct Answer:

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a) Interest $152,000...

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