Cheyenne Company has budgeted the following information for June: Cash receipts Beginning cash balance Cash payments Desired ending cash balance Multiple Choice If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,000 increments, and interest is paid monthly at 1% on the first day of the following month. The company had no debt before June 1. The amount of interest paid on July 1 would be: $590. $ 339,000 22,000 $476. 382,000 42,000

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Cheyenne Company has budgeted the following information for June:
Cash receipts
Beginning cash balance
Cash payments
Desired ending cash balance
If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning of the month in
$1,000 increments, and interest is paid monthly at 1% on the first day of the following month. The company had no debt before
June 1. The amount of interest paid on July 1 would be:
Multiple Choice
$590.
$ 339,000
22,000
382,000
42,000
$476.
Transcribed Image Text:Cheyenne Company has budgeted the following information for June: Cash receipts Beginning cash balance Cash payments Desired ending cash balance If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,000 increments, and interest is paid monthly at 1% on the first day of the following month. The company had no debt before June 1. The amount of interest paid on July 1 would be: Multiple Choice $590. $ 339,000 22,000 382,000 42,000 $476.
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