An employee at Dragon Steel Corporation borrows $10,000 on May 1, 2020 and must repay a total of $10,700 exactly 1 year later. Determine the interest amount and the interest rate paid.
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- Jane's Don't Company borrowed $201,000 on January 1, 2024, and signed a two-year note bearing interest at 13%. Interest is payable in full at maturity on January 1, 2026. In connection with this note, Jane's should report interest expense at December 31, 2024, in the amount of: Multiple Choice $55,396. $26,130. $52,260. $0.Mewto Bank granted a loan to Mew Company on January 1, 2020. The interest on the loan is 12% payable annually starting December 31, 2020. The loan matures in four years. Principal amount P5,000,000 Direct origination cost incurred 120,000 Indirect origination cost incurred 50,000 Origination fee received from the borrower 400,000 After considering the origination fee received from the borrower and the direct origination cost incurred, the effective rate on the loan is 14%. How much is the interest income to be recognized on December 31, 2021?On June 30, 2020, Amoro Company takes out a $5,000 loan documented through a note payable. Interest will be 16% annually and the note matures on June 30, 2021. The interest to be accrued at December 31, 2020 will be: о $400 0 $800 0 $0 0 $467
- The Schitt Company borrowed $900 on January 1, 2020 at an annual rate of interest of eight percent. The loan has a three-year term and the company will not make any payments until the end of the term. What amount of interest expense will the company record on December 31, 2022? Round your final answer to the nearest whole dollar and enter as a positive number.On 15 April 2021, Growth Realty Ltd purchased a piece of equipment worth $200,000 by accepting a 6 - month discounted bank bill. The bill has a face value of $209,000 and is due for settlement on 15 October 2023. Required: (a) State the items and amounts, if any, that would appear in each of Growth Realty Ltd's financial statements on 30 June 2023 pertaining to the discounted bill. Provide your working process. (1) Income statement items) and amount(s): (i) Balance sheet items) and amounts): (ili) Cash flow statement items) and amount(s) ):Gallery located in Maine produces journals and photo albums. On May 1, 2021, G borrowed $250,000 from Midwest One Bank by signing a three year, 6% note payable. Interest is due each May 1. How much, if any, should interest expense be debited for on Dec 31, 2021? Fill in the blank. Omit $ sign.
- Magnolia Corp. granted a loan to a borrower on January 1, 2023. The interest on the loan is 12% payable annually starting December 31, 2023. The loan matures in three years on December 31, 2025. Data related to the loan are: Principal amount10,000,000Origination fees charged against the borrower470,560Direct origination cost incurred235,000 1. The carrying amount of the loan as of January 1, 2023 is A. 9,529,440 B. 9,764,440 C. 10,235,000 D. 10,235,560 2. The carrying amount of the loan as of December 31, 2023 is A. 9,833,817 B. 9,912,213 C. 10,000,00 D. 10,235,560 3. The current portion of the note on December 31, 2023 is A. Nil B. 78,396 C. 9,833,817 D. 9,912,213 4. The noncurrent portion of the note on December 31, 2023 is A. Nil B. 9,833,817 C. 9,912,213 D. 10,000,000On January 1, 2019, FrankKeating Company decided to grant its employees 10 vacation days and five sick days each year. Vacation days are earned can be carried over to the next year but not sick days. Each employee took an average of four sick days in 2019. During the year, each of Mike’s sixty employees earned P300 per day (increases by 5% each year) and had three unused vacation pays as of yearend. How much is the Vacation Pay Expense? How much is the Sick Pay Expense? How much is the Liability for Compensated Absences?MNO Bank granted a loan to a borrower on January 1, 2020. The interest on the loan is 10% payable annually starting December 31, 2020. The loan matures in three years on December 31, 2022. Additional information is as follows: Principal amount of P5,000,000; Direct origination cost incurred for P100,000; Indirect origination cost incurred for P50,000 and Origination fee received from the borrower was P340,000. After considering the origination fee received from the borrower and the direct origination cost incurred, the effective rate on the loan is 12%. Compute for the interest income for 2020.
- The McAllister Company borrowed $40,000 from a bank on January 1, 2021 at an interest rate of 4 percent; the loan will be repaid in full at the end of the two-year term. What amount of interest expense will the company record in its financial statements for the year 2022? As needed, round your final answer (but not intermediate steps) to the nearest whole dollar and enter as a positive number.You have the following transaction during the year of 2020 as related to Steve company: 1. On the 1* of October, the company accepted a 5 month, 7%, note as a settlement of 70,000 uncollected previous accounts. 2. On the 15th of November the company accepted a 120 days, 10%, note in exchange for services provided total of 10,000. 3. On the 31* of December the company granted a loan for a client total of 60,000 by accepting a note that due in 3 years offering 12%. Answer the following: What is the maturity date of the first note What is the maturity date of the second note What is the maturity date of the third note What is the journal entry to be recorded as related to the first note at the maturity date assuming the note is honored What is the journal entry to be recorded as related to the second note at the maturity date assuming the note is dishonored and after negotiations with the client he agree to pay after 1 year What is the journal entry to be recorded as related to the second…
