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On September 1, 2018, 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.
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 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
13. On October 1, a $30,000, 6%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest be paid at the end of each year on September 30. The present value of an annuity factor for 3 years at 6% is 2.6730. The payment will be: A. $10,000.00. B. $11,223.34. C. $10,800.00. D. $10,400.00. E. $1,223.34.
Problem 2(20 points) On September 1, 2018, Smit Co. received a 12%, six-month note receivable in settlement of accounts receivable of $320,000. Smit Co. insists that any customer who fails to pay an account receivable when due must replace their unpaid account receivable with an interest-bearing note receivable. Assume the company makes adjusting entries for accrued interest revenue once a year on December 31. Journalize the following events on the books of Smit Co.: 1. Record the receipt of the...
6) Jane's Donut Co. borrowed $200,000 on September 1, 2018, and signed a one-year note bearing interest at 12%. Interest is payable in full at maturity on September 1, 2019. In connection with this note, Jane's should report interest expense at December 31, 2018, in the amount of:
Garr Co. issued $4,100,000 of 12%, 5-year convertible bonds on December 1, 2017 for $4,117,323 plus accrued interest. The bonds were dated April 1, 2017 with interest payable April 1 and October 1. Bond premium is amortized each interest period on a straight-line basis. Garr Co. has a fiscal year end of September 30. On October 1, 2018, $2,050,000 of these bonds were converted into 28,000 shares of $15 par common stock. Accrued interest was paid in cash at the...
On October 1, 2018, ZZZ Corporation issued an $800,000, 10%, nine-month interest-bearing note. Assuming interest was accrued in June 30, 2019, the entry to record the payment of the note on July 1, 2019, will include a:
On August 1, a $60,000, 7%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest be paid each year on July 31. The present value of an annuity factor for 3 years at 7% is 2.6243. The present value of a single sum factor for 3 years at 7% is 0.8163. The payment each July 31 will be: Multiple Choice 1. $20,000.00. 2. $22,863.24. 3. $20,800.00. 4. $20,400.00. 5. $2,863.10.
On March 10, the GGD Co a promissory note for a Problem 5 1. in the GGD Company borrowed $36,000 from a bank. The company ar note for a term of three years, with payments to start on April 10. Month ments are required, consisting of $1,000 on the principal plus interest to be compte the rate specified on the note. On March 31, what amount will appear as a long-term liability on the balance sheet? Problem 6 For this...