At 30 June 20X2 a company had $1m 8% loan notes in issue, interest being paid half-yearly on 30 June and 31 December. On 30 September 20X2 the company redeemed $250,000 of these loan notes at par, paying interest due to that date. On 1 April 20X3 the company issued $500,000 7% loan notes, interest payable half-yearly on 31 March and 30 September. What figure should appear in the company's statement of profit or loss for interest payable in the year ended 30 June 20X3? A $88,750 B $82,500 C $65,000 D $73,750

Q: On 1 November, Year 1, Noble Co. borrowed P80,000 from South Bank and signed a 12%, six-month note…

A: Solution: Interest on note at maturity = P * R* T = P80,000 * 12%*6/12 = P4,800

Q: A loan has been made by the bank on 31st October for 60 days to Company Trading LLC. Company Trading…

A: Journal Entry: It is used to record the business transactions of an enterprises.

Q: Question 2 Morton Company had the following select transactions. Apr. 1, 2020 Accepted Remington…

A: Accounts receivable are those receivables to whom business has made credit sales on account.…

Q: 2, 69 st dol

A: Answer : Interest = Notes value * Interest rate * Days Interest = $75,972 * 6%*120/360 Interest =…

Q: On June 8, Williams Company issued an $70,538, 11%, 120-day note payable to Brown Industries.…

A: The note payable is reported as liabilities in the balance sheet. The maturity value of note is…

Q: (d) At 30 June 2002 a company had Klm 8% loan notes in issue, inter yearly on 30 June and 31…

A: Statement of comprehensive income The statement of comprehensive income includes revenue and…

Q: ABC Company negotiated a $250,000 revolving line of credit with the Bank of Montreal at prime plus…

A: Prime rate: It is the rate that is charged by the commercial banks for loans taken by the most…

Q: On January 1, Year 1, Mahoney Company borrowed $172,000 cash from Sun Bank by issuing a 5-year, 8%…

A: Please see the answer below ? Notes Payable: Long-term debt instruments issued by businesses as…

Q: A company has a $500,000 30 year fixed loan payable at an interest rate of 4% monthly loan payments…

A: The entry for first month loan payment  are as follows

Q: At what amount should be the note receivable from UUU Company be reported at year-end?

A:

Q: 8 At 30 June 20X2 a Runner Co had $1 million 8% loan notes in issue, interest being paid half-yearly…

A: Interest is the amount which is paid over and above the principal amount. It is not an operating…

Q: FDN Company signed a 90-day, 8% P150,000 note with the bank for cash borrowed. On maturity date, the…

A: The balance sheet represents the financial position of the business  The note payable is recorded as…

Q: On June 8, Williams Company issued an $85,200, 9%, 120-day note payable to Brown Industries.…

A: Note payable is issued by the debtor as a. Promise note that he would make the payment on time with…

Q: On the April 12 interest payment date, the outstanding balance on Eastern Yard Service's revolving…

A: The amount paid by the borrower on the outstanding amount of the loan to the lenders (Banks) on the…

Q: On January 1, 20x1, Next Co. obtains a P4,000,000 bank loan due on December 31, 20x4. Interest of…

A:

Q: On July 1, Year 1, the Barley Company loaned $50,000 to the Jackson Co. The note has a stated…

A: Given:Principal loaned - $50,000Interest rate – 10%Date of note issued – July 1, Year 1Maturity date…

Q: On January 1, a company borrowed cash by issuing a $430,000, 4%, installment note to be paid in…

A: Amortiazation table:An amortization table is a financial tool that breaks down principle and…

Q: At year end, Rei company issued a P2,000,000 face amount note payable in exchange for services…

A: Note payable ::::P2,000,000.... Interest expenses::2000000*3%*9/12 months=P45,000...... The compound…

Q: If the company accepted a Notes Receivable on Oct 1, X1 for $60,000 at 8%, due in one year, what is…

A: Maturity value is the total amount including the interest on the Notes Receivable till it's maturity…

Q: On January 1, 20X1, the company received a $10,000 three-year note bearing interest at 10% annually.…

A: Journal entry is a primary entry that records initially the financial transactions of the company.

Q: A business issued a 45-day, 6% note for $210,000 to a creditor. Principal and interest are payable…

A: Notes are short term financial intrument with a fixed maturity period and usually short term…

Q: On July 8, Action Co. issued an $80,000, 6%, 90-day note payable to Scanlon Co. Assuming a 360-day…

A: The note is the liability on which a specific percentage of interest has to be paid over the…

Q: ABC Company negotiated a $250,000 revolving line of credit with the Bank of Montreal at prime plus…

A: Required: Interest charged on July 20th and August 20th. Assumption: There are 365 days in a year.

Q: At year-end, Thor Company issued a P 1,000,000 face amount note payable in exchange for services…

A: >Note Payables are the liabilities. >It can be issued in case of: --when goods are…

Q: On January 1, Year 1, Mahoney Company borrowed $168,000 cash from Sun Bank by issuing a 5-year, 8%…

A: Note​ payable: Note​ payable is an instrument through which borrower obtains money from lender and…

Q: On June 8, Williams Company issued an $75,972, 6%, 120-day no required, round your answer to the…

A: Maturity amount is the amount that has to be paid at the end of the life of bond or notes payable.…

Q: A company has borrowed $210,000 under a line-of credit agreement. It must pay a stated interest rate…

A: The loan can be taken from the organized banks and through the local lenders. The lender of the…

Q: what is the effective interest rate on the loan?

A: Information provided: Line o credit = 500,000 Stated interest rate = 10% Compensation balance…

Q: On June 8, Williams Company issued an $74,068, 8%, 120-day note payable to Brown Industries.…

A: Maturity value of note = issue price + interest accrued over term (for 120 days)

Q: On June 8, Williams Company issued an $80,400, 7%, 120-day note payable to Brown Industries.…

A: Given: Face value = $80,400 Interest rate = 7% Days = 120

Q: Chang, Inc. issued a 3-month note in the amount of $360,000 on 12/01/17 with an annual rate of 5%.…

A: Accrued interest is $1,500. Computation of accrued interest: Excel spread sheet:

Q: Chang, Inc. issued a 120-day note in the amount of $360,000 on 12/16/17 with an annual rate of 5%.…

A: Accrued interest is $739.73. Computation of accrued interest: Excel spread sheet:

Q: On June 8, Williams Company issued an $91,200, 11%, 120-day note payable to Brown Industries.…

A: Notes are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: On the June 12 interest payment date, the outstanding balance on Delta Nurseries’ revolving loan was…

A: Interest refers to an amount being charged on the outstanding at the end of every payment that is…

Q: On June 8, Williams Company issued an $72,000, 7%, 120-day note payable to Brown Industries.…

A: The maturity amount of a bond is the total amount that the issuer of the bond has to pay in order to…

Calculating the Return On A Loan