Question

ssignment i Saved Help Save Year 1 Apr. 20 Purchased $40, 250 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 10%, $35,000 note payable along with paying $5,250 in cash. July 8 Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9%, $80,000 note payable. Paid the amount due on the note to Locust at the maturity date. Paid the amount due on the note to NBR Bank at the maturity date. Nov. 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8%, $42,000 note payable. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 ? Paid the amount due on the note to Fargo Bank at the maturity date. 2. Determine the interest due at maturity for each of the three notes. (Do not round your intermediate calculations. Use 360 days a year.) Principal X Rate X Time Interest X % х Locust NBR Bank Fargo Bank x x % 96 x

Answer 1

Calculate interest due at maturity

	Principal	*	Rate	*	Time	=	Interest
Locust	35000	*	10%	*	90/360	=	875
NBR Bank	80000	*	9%	*	120/360	=	2400
Fargo Bank	42000	*	8%	*	60/360	=	560