Chase Bank issued a Guarantee for Sara needed in her business by an amount of $30,000 for a period of five months starts on March 1, the bank charged her insurance 25%, in addition to 1% commission and $20 stamps. Sara Guarantee has been modified to become $40,000 with extension for three months. What is the amount will be deducted from Sara account when guarantee modified? O a. 2,545 b. 2,620 C. 10,120 O d. 3,120

Chase Bank issued a Guarantee for Sara needed in her business by an amount of $30,000 for a period of five months starts on March 1, the bank charged her insurance 25%, in addition to 1% commission and $20 stamps. Sara Guarantee has been modified to become $40,000 with extension for three months. What is the amount will be deducted from Sara account when guarantee modified? O a. 2,545 b. 2,620 C. 10,120 O d. 3,120

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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On April 12 Hong co. agrees to accept a 60 day, 6% 6,900 note from indigo co to extend the due date on an overdue account. What is the journal entry the indigo co would make when it record payment of note on maturity date (use 360 days a year)
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Vv
Royal Bank agrees to lend Backyard Corporation $200,000 on January 1. Backyard signs a $200,000, 4%, 9-month note. Interest is due at maturity on September 30. Backyard's year end is March 31 when they post adjusting entries. What journal entry will Backyard make when paying off the note and interest at maturity? Debit notes payable $200,000, interest expense $4,000 and interest payable $2,000; Credit cash $206,000 Debit notes payable $206,000; Credit cash $206,000 Debit notes payable $200,000 and interest expense $6,000; Credit cash $206,000 Debit notes payable $200,000, interest expense $2,000 and interest payable $4,000; Credit cash $206,000
c

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