Ans. Interest amount= 56000*3/100 * 8/12= 1120
Assuming year end on 31st Dec., current year is of 6 months, rest interest is prepaid.
Prepaid Interest= 1120*2/8= 280
Journal,
Interest To Bank 1120
Prepaid Interest To Interest 280
ponse Maps News Translate On 1st July firm X obtains a loan for 56.000 for 8-months,...
the trial balance before and after adjustment for Sheridan company at October Maps News Translate The trial balances before and after adjustment for Sheridan Company at October 31, 2021, which is the end of its fiscal year. are as follows: Before Adjustment After Adjustment Debit Credit Debit Credit $9,170 $9,170 Cash Accounts Receivable 8,845 9,395 Supplies 2,520 765 Prepaid Insurance 2,530 3,750 34,145 34,145 Equipment $5,540 Accumulated Depreciation-Equipment $3,285 5,725 5,725 Accounts Payable Notes Payable 38,060 38,060 1,230 Salaries Payable...
In January, See Us First Bank offers a client firm a $ 100 million loan for one year with the following terms: • The interest payments are due every six months. • The interest rate is determined every six months at the rate on the 3-month commercial paper on that day. That is, the rate for the SIX-MONTH period from July 1st until December 31st will be determined on July 1st. at the 3-month commercial paper spot rate. There are...
Bjork, Inc. borrowed $150,000 from 1st Star Bank on July 1, 2016. The loan stipulates that the annual interest rate is 8%, payable on the 15th of each month, beginning July 15, 2016. Assume Bjork makes all interest payments when they are due. How much will Bjork, Inc. report on its 2016 balance sheet for interest payable? a. $0 b. $500 c. $6,000 d. $5,500 e. $12,000
7. Bjork, Inc. borrowed $150,000 from 1st Star Bank on July 1, 2016. The loan stipulates that the annual interest rate is 8%, payable on the 15th of each month, payments beginning July 15, 2016. Assume Bjork makes all interest payments when they are due. How much will Bjork, Inc. report on its 2016 income statement for interest expense? a. $500 b. $5,500 c. $12,000 d. $6,000 e. $0
thank you for your help! Question 8 (1 point) On July 1st, a company exchanges an account receivable from a customer with a $100,000 note receivable due in 3 years with a 12% annual interest rate. The customer repays the loan and the accrued interest at the end of the three years. Assume that interest is not compounding from period to period. On receipt of cash from the customer, who pays the principal and all of the interest owed to...
Maps Translate News e Chrome Web Store wc MyEagles Personeext Houston Communitwe 5.1 Simple Interest.. Help Se Harold Manufacturing produces denim clothing. This year, it produced 5,100 denim jackets at a manufacturing cost of $42.00 each. These jackets were damaged in the warehouse during storage. Management investigated the matter and identified three alternatives for these jackets 1. Jackets can be sold as is to a secondhand clothing shop for $8.00 each. 2. Jackets can be disassembled at a cost of...
Exercises #11 1. Xtra Corporation needs $50,000 for three months to finance its working capital. The company has arranged a short-term loan with a bank. The bank charges 8% annual interest rate with interest paid in advance. The bank also requires 5% of the borrowed amount as a compensating balance. Assume Xtra does not have money to serve as a compensating balance and pay interest upfront 1.1 How much Xtra have to borrow? 1.2 Find effective cost of bank loan...
Questions below 1. Aug 1 - Great Adventures obtains $30000, low interest loan for the company. Loan is Due in 3 Years and 6% annual interest is due each year on July 31 2. Aug 4 - The Company purchases 14 kayaks, paying 40,320 cash in total 3. Aug 10 - 20 Kayakers pay $3,800 for clinic. 4. Aug 12 - Collected 2000 from July clinic 5 Aug 17- Tony Conducts second Kayak clinic and the company receives 10500 cash...
Questions below 1. Aug 1 - Great Adventures obtains $30000, low interest loan for the company. Loan is Due in 3 Years and 6% annual interest is due each year on July 31 2. Aug 4 - The Company purchases 14 kayaks, paying 40,320 cash in total 3. Aug 10 - 20 Kayakers pay $3,800 for clinic. 4. Aug 12 - Collected 2000 from July clinic 5 Aug 17- Tony Conducts second Kayak clinic and the company receives 10500 cash...
8. Prepare the loan amortization schedule ($15) You borrow $1,000, and the loan is to be repaid in three equal payments at the end of each of the next three years. The lender charges a 6 percent interest rate on the loan balance that is outstanding at the beginning of each year. 1) Calculate the payment the firm must repay each year. 2) Prepare the loan amortization schedule (fill all the numbers in each cell). Repayment of Remaining Principal Beginning...