On September 1, 2014, Lowe Co. issued a note payable to National Bank in the amount...
On September 1, 2014, Lowe Co. issued a note payable to National Bank in the amount of $900,000, bearing interest at 9%, and payable in three equal annual principal payments of $300,000. On this date, the bank's prime rate was 8%. The first payment for interest and principal was made on September 1, 2015. At December 31, 2015, Lowe should record accrued interest payable of
a. $27,000.
b. $24,000.
c. $18,000.
d. $16,000.
Homework Answers
Balance principal payable on Dec 31,2015
= 900,000 - 300,000
= 600,000
Accrued interest payable = (600,000*9%) * 4 months/12 months
(sep to Dec)
= 18,000
Add Answer to:
On September 1, 2014, Lowe Co. issued a note payable to
National Bank in the amount...
On September 1, 2020, Lowe Co. issued a note payable to National Bank in the amount...
On September 1, 2020, Lowe Co. issued a note payable to National Bank in the amount of $1,500,000, bearing interest at 9%, and payable in three equal annual principal payments of $500,000. On this date, the bank's prime rate was 8%. The first payment for interest and principal was made on September 1, 2021. At December 31, 2021, Lowe should record accrued interest payable of a. $45,000. b. $40,000. c. $30,000. d. $25,000.
On September 1, 2018, Lowe Co. issued a note payable to National Bank in the amount...
On September 1, 2018, Lowe Co. issued a note payable to National Bank in the amount of $1,800,000, bearing interest at 9%, and payable in three equal annual principal payments of $600,000 plus interest. The first payment for interest and principal was made on September 1, 2019. At December 31, 2019, Lowe should record accrued interest payable of a. $27,000. b. $36,000. c. $40,500. d. $54,000. e. $108,000.
A five-year, 4%, $80,000 note payable is issued on January 1. Terms include fixed annual principal...
A five-year, 4%, $80,000 note payable is issued on January 1.
Terms include fixed annual principal payments of $16,000, plus
interest on the outstanding balance. The entry to record the first
instalment payment will include a
debit to Notes Payable of $16,000.
credit to Interest Expense of $3,200.
credit to Notes Payable of $12,800.
debit to Cash of $16,000.
A five-year, 4%, $80,000 note payable is issued on January 1. Terms include fixed annual principal...
A five-year, 4%, $80,000 note payable is issued on January 1.
Terms include fixed annual principal payments of $16,000, plus
interest on the outstanding balance. The entry to record the first
instalment payment will include a
debit to Notes Payable of $16,000.
credit to Interest Expense of $3,200.
credit to Notes Payable of $12,800.
debit to Cash of $16,000.
A five-year, 4%, $80,000 note payable is issued on January 1. Terms include fixed annual principal...
A five-year, 4%, $80,000 note payable is issued on January 1.
Terms include fixed annual principal payments of $16,000, plus
interest on the outstanding balance. The entry to record the first
instalment payment will include a
debit to Notes Payable of $16,000.
credit to Interest Expense of $3,200.
credit to Notes Payable of $12,800.
debit to Cash of $16,000.
Jamestown Industries issued a $10,000, 90-day, noninterest-bearing note payable to the bank on December 1, 2016....
Jamestown Industries issued a $10,000, 90-day, noninterest-bearing note payable to the bank on December 1, 2016. At the date of discount, the bank's discount rate was 18 percent. The company would prepare which of the following journal entries on December 31, 2018: a) Interest Expense 150 Interest Payable 150 b)Interest Expense 150 Discount on Notes Payable 150 c)Interest Payable 150 Note Payable 150 d)Interest Expense 150 Cash 150
C.S. Lewis Company had the following transactions involving notes payable. July 1, 2014 Borrows $50,000 from...
C.S. Lewis Company had the following transactions involving
notes payable.
July 1, 2014
Borrows $50,000 from First National Bank by signing a 9-month,
8% note.
Nov. 1, 2014
Borrows $60,000 from Lyon County State Bank by signing a
3-month, 6% note.
Dec. 31, 2014
Prepares adjusting entries.
Feb. 1, 2015
Pays principal and interest to Lyon County State Bank.
Apr. 1, 2015
Pays principal and interest to First National Bank.
Prepare journal entries for each of the transactions.
(Credit account...
Meyer, Inc., issued a $50,000, 120-day, noninterest-bearing note on November 1, 2018, payable to the bank. At the date o...
Meyer, Inc., issued a $50,000, 120-day, noninterest-bearing note on November 1, 2018, payable to the bank. At the date of discount, the bank's discount rate was 15 percent.Myer would prepare which of the following journal entries on December 31, 2018? a) Interest Expense 1,250 Discount on Notes Payable 1,250 b) Interest Expense 1,250 Cash 1,250 c) Interest Expense 1,250 Interest Payable 1,250 d)Interest Payable 1,250 Discount on Notes Payable 1,250
On August 31, 2020, Pine Company issued a 9-month, 12% note payable to National Bank in...
On August 31, 2020, Pine Company issued a 9-month, 12% note payable to National Bank in the amount of $180,000. Interest is due at maturity. Record the entries for Pine Company on the following dates. a. Issuance of the note on August 31, 2020. b. Adjusting entry on December 31, 2020, Pine Company's fiscal year-end. C. Payment of the note payable on May 31, 2021. Note: List multiple debits or credits (when applicable) in alphabetical order. Date Account Name Dr....
On August 1, a $48,000, 9%, 3-year installment note payable is issued by a company. The...
On August 1, a $48,000, 9%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of $18,962.63. The entry to record the first payment on July 31 would include: Multiple Choice Debit to Notes Payable of $18,962.63 Debit to Interest Expense of $4,320.00. Debit to Cash of $18,962.63. Credit to Notes Payable of $18,962.63 Credit to Cash $14,642.63
On September 1, 2018, Lowe Co. issued a note payable to National Bank in the amount of $1,800,000, bearing interest at 9%, and payable in three equal annual principal payments of $600,000 plus interest. The first payment for interest and principal was made on September 1, 2019. At December 31, 2019, Lowe should record accrued interest payable of a. $27,000. b. $36,000. c. $40,500. d. $54,000. e. $108,000.
A five-year, 4%, $80,000 note payable is issued on January 1.
Terms include fixed annual principal payments of $16,000, plus
interest on the outstanding balance. The entry to record the first
instalment payment will include a
debit to Notes Payable of $16,000.
credit to Interest Expense of $3,200.
credit to Notes Payable of $12,800.
debit to Cash of $16,000.
A five-year, 4%, $80,000 note payable is issued on January 1.
Terms include fixed annual principal payments of $16,000, plus
interest on the outstanding balance. The entry to record the first
instalment payment will include a
debit to Notes Payable of $16,000.
credit to Interest Expense of $3,200.
credit to Notes Payable of $12,800.
debit to Cash of $16,000.
A five-year, 4%, $80,000 note payable is issued on January 1.
Terms include fixed annual principal payments of $16,000, plus
interest on the outstanding balance. The entry to record the first
instalment payment will include a
debit to Notes Payable of $16,000.
credit to Interest Expense of $3,200.
credit to Notes Payable of $12,800.
debit to Cash of $16,000.
C.S. Lewis Company had the following transactions involving
notes payable.
July 1, 2014
Borrows $50,000 from First National Bank by signing a 9-month,
8% note.
Nov. 1, 2014
Borrows $60,000 from Lyon County State Bank by signing a
3-month, 6% note.
Dec. 31, 2014
Prepares adjusting entries.
Feb. 1, 2015
Pays principal and interest to Lyon County State Bank.
Apr. 1, 2015
Pays principal and interest to First National Bank.
Prepare journal entries for each of the transactions.
(Credit account...
On August 31, 2020, Pine Company issued a 9-month, 12% note payable to National Bank in the amount of $180,000. Interest is due at maturity. Record the entries for Pine Company on the following dates. a. Issuance of the note on August 31, 2020. b. Adjusting entry on December 31, 2020, Pine Company's fiscal year-end. C. Payment of the note payable on May 31, 2021. Note: List multiple debits or credits (when applicable) in alphabetical order. Date Account Name Dr....
Most questions answered within 3 hours.
-
A z-score
communicates a raw score’s "relative standing"
under the normal curve in relation to:
asked 2 minutes ago -
An object is vibrating on a spring with the following equation
of motion:
?=(30 ??)cos((2?)/(160)?)
a)...
asked 1 minute ago -
Vulcan Flyovers offers scenic overflights of Mount St. Helens,
the volcano in Washington State that explosively...
asked 4 minutes ago -
If organizations do not adapt fast enough and move incrementally
from the twentieth-century model to the...
asked 5 minutes ago -
A helium balloon with 2.5L of gas has a gauge pressure of 10,000
Pa. The balloon...
asked 9 minutes ago -
What is responsible for Jupiter's enormous magnetic field?
asked 24 minutes ago -
At the end of the year, a company offered to buy 5,000 units of
a product...
asked 26 minutes ago -
Implement C++ program for each of the following.
Let D = [-48, -14, -8, 0, 1,...
asked 46 minutes ago -
Consider a labor market in which LD = 400 – 4W and LS = 250 +...
asked 1 hour ago -
Let’s say you are teaching a typically-developing young child
how to eat with a spoon. Describe...
asked 43 minutes ago -
Ask Your Teacher A toy gun uses a spring to project a 5.6-g soft
rubber sphere...
asked 55 minutes ago -
*****DO NOT ANSWER THIS QUESTION IF YOU DON'T
KNOW*******
Question - PERSONAL DEVELOPMENT ESSAY and Detailed...
asked 1 hour ago