565012 Determine the maturity date and compute interest for each note.3 Days to be used per year360 days478LO CO12131415ԷNote12316BNoteContract DateCMarch 07May 21October 26PrincipalD$12,00018,00014,000910 Required: Determine the maturity date and compute interest for each note.11Interest Rate5%7%4%EContract Date Maturity Date Interest Expense1Mar 072May 213 Oct 26FTIPeriod of Note (Term)60 days90 days45 days

Note receivables means promise to receive amount in future period. Interest amount is to received on…

60 1 2 Determine the maturity date and compute interest for each note. 3 Days to be used per year 360 days 4 5 7 8 LO CO Note 1 2 3 B Note 1 2 3 Contract Date March 07 May 21 October 26 Principal D $12,000 18,000 14,000 Interest Rate 5% 7% 4% 9 10 Required: Determine the maturity date and compute interest for each note. 11 12 13 14 15 16 E Contract Date Maturity Date Interest Expense Mar 07 May 21 Oct 26 LL Period of Note (Term) 60 days 90 days 45 days

60 1 2 Determine the maturity date and compute interest for each note. 3 Days to be used per year 360 days 4 5 7 8 LO CO Note 1 2 3 B Note 1 2 3 Contract Date March 07 May 21 October 26 Principal D $12,000 18,000 14,000 Interest Rate 5% 7% 4% 9 10 Required: Determine the maturity date and compute interest for each note. 11 12 13 14 15 16 E Contract Date Maturity Date Interest Expense Mar 07 May 21 Oct 26 LL Period of Note (Term) 60 days 90 days 45 days

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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mework Assignment Exercise 7-12A (Algo) Notes receivable-accrued interest LO 7-5 On May 1, Year 1, Benz's Sandwich Shop loaned $14,000 to Mark Henry for one year at 9 percent interest. Required: a. What is Benz's interest income for Year 1? b. What is Benz's total amount of receivables at December 31, Year 1? c. How will the loan and interest be reported on Benz's Year 1 statement of cash flows? d. What is Benz's interest income for Year 2? e. What is the total amount of cash that Benz's will collect in Year 2 from Mark Henry? f. How will the loan and interest be reported on Benz's Year 2 statement of cash flows? g. What is the total amount of interest that Benz's earned on the loan to Mark Henry? Note: For all requirements, round your answers to the nearest dollar amount. a. Interest income ن و نان فان b. Receivables c. Cash used in investing activities Interest income e. Cash f. g. Interest earned 53° HO Saved
Exercise 7-11A (Algo) Accounting for a line of credit LO 7-6 Colson Company has a line of credit with Federal Bank. Colson can borrow up to $438,000 at any time over the course of the calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first four months of the year. Colson agreed to pay interest at an annual rate equal to 2.50 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Colson pays 6.25 percent (3.75 percent + 2.50 percent) annual interest on $79,400 for the month of January. Month January February March April Amount Borrowed or (Repaid) $ 79,400 120, 100 (17,700) 33,400 Prime Rate for the Month 3.75% 2.75 3.25 3.75 Required. a. Compute the amount of interest that Colson will pay on the line of credit for the…
Face value (principal) $ TABLE 7-1 50,400 Day of month 1 2 3 4 Rate of interest 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 25 26 27 28 29 30 31 31 Jan. 9% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Exact days-in-a-year calendar (excluding leap year)" Length of note 90 days 28 Feb. 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 31 Mar. 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 30 Apr. Maturity value 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 31 May 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 30 31 31 30 June July Aug. Sept. 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 Date of note January 12 189 190 191…
Question 11 A nine months 15% note for $9,000 dated April 15 is reciebed from a customer. The maturity value of the note is ____
Exerclse 9-3 Accounting for note payable LO P1 Sylvestor Systems borrows $70,000 cash on May 15 by signing a 90-day, 5%, $70,000 note. 1. On what date does this note mature? 2-a. Prepare the entry to record issuance of the note. 2-b. First, complete the table below to calculate the interest expense at maturity. Use those calculated values to prepare your entry to record payment of the note at maturity. Complete this question by entering your answers in the tabs below. Required 2B Interest at Maturity Required 2B General Journal Required 1 Required 2A First, complete the table below to calculate the interest expense at maturity. (Use 360 days a year. Round final answers to the nearest whole dollar.) Interest at Maturity Principal Rate (%) Time Total interest
Question 29