a) Interest expense = 84000*6% = 5040
Principal = 19941-5040 = 14901
b) Principal balance = 84000-14901 = 69099
c) Interest expense = 69099*6% = 4146
Principal = 19941-4146 = 15795
Dan Dayle started a business by issuing an $84,000 face value note to First State Bank on January 1, 2018. The note...
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On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $49,500 face value, four-year term note that had an 6 percent annual interest rate. The note is to be repaid by making annual cash payments of $14,285 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $22,275 cash per year. BROWN CO. Balance Sheet As of December 31...
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Required information [The following information applies to the questions displayed below.] On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $70,000 face value, four-year term note that had an 4 percent annual interest rate. The note is to be repaid by making annual cash payments of $19,284 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $34,300...
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