Innovate Company borrowed on a one-year, 10%, $150,000 note on May 1, 2017 with interest and...
Innovate Company borrowed on a one-year, 10%, $150,000 note on May 1, 2017 with interest and principal to be paid at maturity. How much interest should Innovate Company report on its income statement for the year ending December 31, 2017?
| a. |
|
|||||||||||||
| b. |
$15,000 |
|||||||||||||
| c. |
$30,000 |
|||||||||||||
| d. |
$5,000 |
Homework Answers
The correct answer is "a. $10,000".
Calculation: Amount of interest to be reported by Innovate Company = $150,000 * 10% * (8/12)
Amount of interest = $10,000
Since interest for the period May 1, 2017 till December 31, 2017 (8 months) pertains to the current period, interest expense is also to be recognized by debiting interest expense account and crediting interest payable account.
Add Answer to:
Innovate Company borrowed on a one-year, 10%, $150,000 note on
May 1, 2017 with interest and...
Bella borrowed on a one-year, 6%, $100,000 note on May 1, 2017 with interest and principal...
Bella borrowed on a one-year, 6%, $100,000 note on May 1, 2017 with interest and principal to be paid at maturity. How much interest should Innovate Company report on its income statement for the year ending December 31, 2017? ed 50 Select one A $10,000 n B. $6,000 C. $4,000 D. $8,000
A company borrowed $500,000 on a one-year, 10% note on October 1, 2018, with interest and...
A company borrowed $500,000 on a one-year, 10% note on October 1, 2018, with interest and principal to be paid at maturity. How much interest should be reported on the income statement for the year ending December 31, 2019? a. $50,000 b. $150,000 c. $75,000 d. $37,500
On July 1, 2019, Goode Company borrowed $150,000. The company signed a note payable with interest...
On July 1, 2019, Goode Company borrowed $150,000. The company signed a note payable with interest at 8 percent per year. The note and interest are due on December 31, 2019. On December 31, 2019, Goode paid $156,000 to settle the debt in full. Assuming no accruals for interest have been made during the year, transaction analysis of the $156,000 cash payment on December 31, 2019 should reflect which of the following? Multiple Choice A decrease in stockholders' equity of...
A five-year, non-interest-bearing. $5,000 note, dated January 1, 2017, has a present value of $3,917. The...
A five-year, non-interest-bearing. $5,000 note, dated January 1, 2017, has a present value of $3,917. The market rate of interest is 5%. Interest expense for the period ending December 31, 2017.is $392 $196. $250. $217. D Question 8 2 pts A coupon payment is the payment of principal that is the coupon' of the total payments. the amount of interest expense reported on the income statement. calculated by multiplying the book value of the bonds times the effective rate of...
On March 1, Year1, Fine Co borrowed $10,000 and signed a two year note bearing interest...
On March 1, Year1, Fine Co borrowed $10,000 and signed a two year note bearing interest at 12% per annum compounded annually. Interest is payable in full at maturity on February 28, Year 3. What amount should Fine report as a liability for accrued interest at December 31, Year 2? a) 800 b) 0 c) 1,824 d. 1,024
Jane's Donut Co. borrowed $200,000 on January 1, 2016, and signed a one-year note bearing interest...
Jane's Donut Co. borrowed $200,000 on January 1, 2016, and signed a one-year note bearing interest at 12% in payable in full at maturity on october 31, 2017. write journal entry for the following dates: Nov 1, 2016 (borrowed), December 31, 2016 (accured interest), and october 21. 2017 ( due date)?
Universal Travel, Inc. borrowed $494,000 on November 1, 2021, and signed a twelve-month note bearing interest...
Universal Travel, Inc. borrowed $494,000 on November 1, 2021, and signed a twelve-month note bearing interest at 6%. Principal and interest are payable in full at maturity on October 31, 2022. In connection with this note, Universal Travel, Inc. should report interest payable at December 31, 2021, in the amount of
Abardeen Corporation borrowed $85,000 from the bank on October 1, Year 1. The note had an...
Abardeen Corporation borrowed $85,000 from the bank on October 1, Year 1. The note had an 6 percent annual rate of interest and matured on March 31, Year 2. Interest and principal were paid in cash on the maturity date. Required a. What amount of cash did Abardeen pay for interest in Year 1? b. What amount of interest expense was recognized on the Year 1 income statement? (Do not round intermediate calculations. Round your answer to the nearest dollar...
Abardeen Corporation borrowed $114,000 from the bank on October 1. Year 1. The note had an...
Abardeen Corporation borrowed $114,000 from the bank on October 1. Year 1. The note had an 4 percent annual rate of interest and matured on March 31, Year 2. Interest and principal were paid in cash on the maturity date. Required a. What amount of cash did Abardeen pay for interest in Year 1? b. What amount of interest expense was recognized on the Year 1 income statement? (Do not round intermediate calculations. Round your answer to the nearest dollar...
The Pita Pit borrowed $198,000 on November 1, 2021, and signed a six-month note bearing interest...
The Pita Pit borrowed $198,000 on November 1, 2021, and signed a six-month note bearing interest at 12%. Principal and interest are payable in full at maturity on May 1, 2022. In connection with this note, The Pita Pit should report interest expense at December 31, 2021, in the amount of: (Do not round your intermediate calculations.) Multiple Choice $0. $3,960. $11,880. $23,760. This is the last question in the assignment. To submit, use Alt + Shift + S. To...
Bella borrowed on a one-year, 6%, $100,000 note on May 1, 2017 with interest and principal to be paid at maturity. How much interest should Innovate Company report on its income statement for the year ending December 31, 2017? ed 50 Select one A $10,000 n B. $6,000 C. $4,000 D. $8,000
A five-year, non-interest-bearing. $5,000 note, dated January 1, 2017, has a present value of $3,917. The market rate of interest is 5%. Interest expense for the period ending December 31, 2017.is $392 $196. $250. $217. D Question 8 2 pts A coupon payment is the payment of principal that is the coupon' of the total payments. the amount of interest expense reported on the income statement. calculated by multiplying the book value of the bonds times the effective rate of...
Abardeen Corporation borrowed $114,000 from the bank on October 1. Year 1. The note had an 4 percent annual rate of interest and matured on March 31, Year 2. Interest and principal were paid in cash on the maturity date. Required a. What amount of cash did Abardeen pay for interest in Year 1? b. What amount of interest expense was recognized on the Year 1 income statement? (Do not round intermediate calculations. Round your answer to the nearest dollar...
Most questions answered within 3 hours.
-
Which of the following is a provision of
NAFTA?
A.
Common accounting rules
B.
Adding new...
asked 6 minutes ago -
Need to do in Python? Can do in Javascript but not in Python
Write a function...
asked 21 minutes ago -
Industry: Telecommunications in India
Here, you need to discuss the sources of the growth pattern
and...
asked 1 hour ago -
Hydrobromic acid
dissolves solid iron according to the followiaung reaction:
Fe(s)+2HBr(aq)→
FeBr2(aq)+ H2(g)
Part A. What...
asked 3 hours ago -
Verify the following vector identity in SPHERICAL
COORDINATES.
div(curl(A)) = 0
asked 5 hours ago -
The work function (Φ) for a metal is 7.50×10-19 J.
What is the longest wavelength (nm)...
asked 5 hours ago -
1. Would the following procedural changes cause the
calculated mass percent Ni2+ ion in Ni(NH3)nCl2 to...
asked 7 hours ago -
1. Why does the voltage of the capacitor vary with frequency?
where does this missing voltage...
asked 8 hours ago -
p p please write each step out clearly
3. A manager of a company is considering...
asked 7 hours ago -
On October 1, Ebony Ernst organized Ernst Consulting; on October
3, the owner contributed $83,540 in...
asked 8 hours ago -
A.)As an electron moves through a region of space, its speed
decreases from 9.60 × 106...
asked 8 hours ago -
In java with the netbeans program do:
Through object programming
Create a class "ContadorP", which is...
asked 8 hours ago