Question 13 (1 point) What is the effective interest rate (rounded) on a 3-month noninterest-bearing note...
Question 2 (1 point) What is the effective interest rate (rounded) on a 3-month, noninterest-bearing note with a stated rate of 12% and a maturity value of $200,000? (Do not round intermediate calculations. Round final answer to 1 decimal place.) 3.1%. 13.6%. 12.4%. 11.5%.
3. Brown Corp borrowed $10 million and issued a 9-month, noninterest-bearing note on Oct. 31, 2018. The loan was made by US Bankcorp. Interest was discounted at issuance at an 9% discount rate. What is the annual effective interest rate on this loan?
Brown Corp. borrowed 100,000 on Oct. 1, 2018 and signed a 12 month note bearing interest at 6 %. Interest is payable in full at maturity on Sep. 30, 2019. Brown Corp should report interest payable at Dec. 31,2018 in the amount of journal entry to record the accrued liability:
Problem 10-12 Acquisition costs; lump-sum acquisition; noninterest-bearing note; interest capitalization [LO10-1, 10-2, 10-3, 10-7] Early in its fiscal year ending December 31, 2018, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased for $860,000. San Antonio paid $230,000 and signed a noninterest-bearing note requiring the company to pay the remaining $630,000 on...
Problem 10-12 Acquisition costs; lump-sum acquisition; noninterest-bearing note; interest capitalization [LO10-1, 10-2, 10-3, 10-7] Early in its fiscal year ending December 31, 2018, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased for $860,000. San Antonio paid $230,000 and signed a noninterest-bearing note requiring the company to pay the remaining $630,000 on...
The Pita Pit borrowed $205,000 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 Ο Ο $12.300. Ο 84,100. Ο Ο 524,600. Ο Ο $0. On September 1, 2021. Daylight Donuts signed a $160,000,8% six-month...
Problem 10-12 (Algo) Acquisition costs; lump-sum acquisition; noninterest-bearing note; Interest capitalization (LO10-1, 10-2, 10-3, 10-7] Early in its fiscal year ending December 31, 2021, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased by paying $310.000 immediately and signing a noninterest-bearing note requiring the company to pay $710.000 on March 28, 2023....
Problem 10-12 Acquisition costs; lump-sum acquisition; noninterest-bearing note; interest capitalization [LO10-1,10-2, 10-3, 10-7] Early in its fiscal year ending December 31, 2018 San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased for $920,000. San Antonio paid $260,000 and signed a noninterest bearing rate requiring the company to pay the remaining $660.000 on...
On January 1, 2021, Byner Company purchased a used tractor. Byner paid $4,000 down and signed a noninterest-bearing note requiring $33,000 to be paid on December 31, 2023. The fair value of the tractor is not determinable. An interest rate of 12% properly reflects the time value of money for this type of loan agreement. The company’s fiscal year-end is December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of...
Problem 13-2 Various transactions involving liabilities [LO13-2, 13-3, 13-4] Camden Biotechnology began operations in September 2018. The following selected transactions relate to liabilities of the company for September 2018 through March 2019. Camden's fiscal year ends on December 31. Its financial statements are issued in April. 2018 a. On September 5, opened checking accounts at Second Commercial Bank and negotiated a short-term line of credit of up to $19,000,000 at the bank's prime rate (12.5% at the time). The company...