Calculate the interest charged on October 10.November 10Calculate the interest charged on November 10.December 1Calculate the interest charged on December 1.Calculate the total interest cost of the loan.Check Erindale Automotive borrowed $8,000 from the Bank of Montreal on a demand note on May 10. Interest on the loan,calculated on the daily balance, is charged to Erindale's current account (the separate interest method) on the 10th ofeach month. Erindale made a payment of $2,000 on July 20, a payment of $3,000 on October 1, and repaid the balanceon December 1. The rate of interest on the loan on May 10 was 8% per annum. The rate was changed to 9.5% onAugust 1 and to 8.5% on October 1. What was the total interest cost for the loan?June 10Calculate the interest charged on June 10.July 10Calculate the interest charged on July 10.August 10Calculate the interest accrued to July 20.Calculate the new principal on July 20.Calculate the interest accrued to August 1.Calculate the interest accrued to August 10.Calculate the interest charged on August 10.September 10Calculate the interest charged on September 10.October 10Calculate the interest accrued to October 1.Calculate the new principal on October 1.Calculate the interest accrued to October 10.

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Answered: Calculate the interest charged on June…

Calculate the interest charged on June 10. July 10 Calculate the interest charged on July 10. August 10 Calculate the interest accrued to July 20. Calculate the new principal on July 20.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
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