Find the discounting of note receivable

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Reference no: EM1376668

Selkirk Company gets a $15,000 note receivable from a customer on 1^st January, 2013. The note, along with interest at 10 percent, is due on 1^st July, 2013. On 28^th February, 2013, Selkirk discounted the note at Unionville Bank. The bank's discount rate is 12 percent.

Required:
Prepare journal entries required on 28^th February, 2013, to accrue interest and to record the discounting for Selkirk. Suppose that the discounting is accounted for as a sale. (If no entry is required for a particular transaction, select "No journal entry required" in first account field.)

Find the accrued interest earned.

Find the discounting of note receivable.

Reference no: EM1376668

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