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- Please answer this question correctly ASAP. Thank you.A company received a P 500,000 line of credit from its bank. Some information about the credit line is as follows: Stated interest rate 10% Compensating balance requirement 20% Assuming that the company drew down the entire amount at the beginning of the year, and that the loan is discounted, what is the effective interest rate on the loan?On November 1, Year 1 Shelter Company loaned $4,000 cash to Cove Company. The one-year note carried a 5% rate of interest. Which of the following shows how the loan will affect Shelter's financial statements on November 1, Year 1? A. B. C. D. Assets Cash -4,000 -4,000 -4,000 -4,000 Multiple Choice O Net + Receivable = 4,000 4,000 ΝΑ ΝΑ Option A Option C Option D Balance Sheet = Liabilities+ Stockholders' Equity Accounts Common Retained Stock + Earnings Payable + ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ Option B 4,000 -4,000 Revenue ΝΑ ΝΑ ΝΑ ΝΑ Income Statement Expense Net Income ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ Statement of Cash Flows -4,000 IA -4,000 OA 4,000 IA -4,000 OA
- Everglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of the loan include a repayment of principal in eight, equal installments, paid annually from the April 1 date. The annual interest rate on the loan is 5%, recognized on December 31. (Round answers to the nearest cent, if needed.) A. Compute the interest recognized as of December 31 in year 1. B. Compute the principal due in year 1.A local business received a $45,000 loan at 4.00% compounded semi-annually. The business settled the loan with monthly payments of $875. a. How many payments are required to settle the loan? Round up to the nearest whole payment. 57 56 55 58 b. What was the interest portion of payment 19? $104.31 $101.03 $108.16 $95.67 c. What was the size of the final payment? $400.50 $407.97 $404.87 $395.79Please write the attached text in handwriting. Thanks
- 9. Received P10,000 cash from loan with BPI. The loan have a simple interest of 10% in 1 year and to be paid every month. 9A. Balance sheet approach Particulars/Transactions Debit Credit Additional Information.(can be with or without) Interest expense is different from the principal loan Adjusting entries for BSA Particulars/Transactions Debit Credit 9B. Income Statement Approach Particulars/Transactions Debit Credit Additional Information. (can be with or without) Interest expense is different from the principal loan Adjusting entries in ISA Particulars/Transactions Debit CreditOn October 1, Eli's Carpet Service borrows $125,000 from First District Bank on a 3-month, $125,000, 8% note. What entry mnust Eli's Carpet Service make on December 31 before financial statements are prepared? Select one: a. Interest Expense........ 10,000 19,000 Interest Payable b. Interest Payable..... Interest Expense 2,500 2,500 2,500 C. Interest Expense..... Interest Payable... 2,500 d. Interest Expense.... 2,500 Notes Payable.. 2,500Please read and record journal entries statements provided carefully.
- NOP Co. has agreed to the following loan proposal by a bank:▪ Stated interest rate of 10% on a one-year discounted note ▪ 15% of the loan as compensating balance with zero-interest current account to be maintained with the bank. ▪ The loan will have net proceeds of P1,500,000. Required:1. How much is the principal amount of the loan?Legitimate Financial Services made a loan at 9.75% interest for 252 days. If the amount of interest was $210.50, use the exact interest method to find the amount of principal borrowed. (Round to the nearest whole dollar amount.) 00 $2,159 $2,999 $3,127 $3,388Use the actuarial method to find the payoff amount for the loan paid in full before its due date. Amount Financed: $9000 Regular Monthly Payment. $189 02 Total Number of Payments scheduled: 60 Loan repaid in full instead of making: 12th payment