Damoah's Pizza Co. borrowed $200,000 on January 1, 2020, and signed a two-year note bearing interest at 12%. Interest is payable in full at maturity on January 1, 2022. In connection with this note, Damoah's should report interest expense at December 31, 2020, in the amount of:   Question 23 options:   $0   $24,000   $48,000   $50,880

Q: At the end of 2020, the business has a notes payable with maturity value of TL18.000. The maturity…

A: Notes payable can be defined as the promissory note that is issued in behalf of the payment with the…

Q: Assume Delta Airlines borrows $500,000 from Chase Bank on November 1, 2021, signing a 9%, six-month…

A:

Q: On September 1, 2021, Daylight Donuts signed a $254,000, 9%, six-month note payable with the amount…

A: Solution...     Principal amount = $254,000  Rate of interest = 9%  Time period = 6 months

Q: On September 1, 2021, Middleton Corp. lends cash and accepts a $10,000 note receivable that offers…

A: Interest revenue Middleton Corp. will report during 2022 = Face value of note receivable x rate of…

Q: accrued interest expense o

A: It is pertinent to note that under accrual concept of accounting transactions are recorded and when…

Q: shows an Interest Expense balance of $500 On August 31, 2020, the company borrowed $5,000 with an…

A: Interest expenses can be defined as the interest that is payable on any borrowings such as bonds,…

Q: McCormick Corporation issued a 4-year, $40,000, 5% note to Greenbush Company on January 1, 2020, and…

A: Given: Note payable - 40,000 Due period - 4 years Stated interest rate - 5% Market interest rate -…

Q: At the end of 2019, the business has a notes payable with maturity value of TL12.000. The maturity…

A: The formula to calculate the present value of future cash inflow is C/(1+r)n, where C is the cash…

Q: Cheyenne Corporation issued a 4-year, $31,000, 4% note to Greenbush Company on January 1, 2020, and…

A: Date Accounts title and explanation Debit Credit Calculations 1-Jan-20 Computer $24,268…

Q: On October 31, 2020, DonutCo Company signed a $890,000, 5%, ten-month note payable with the amount…

A: Notes Payable - Notes is an instrument required to be issued by the borrower. This instrument is a…

Q: On September 1, 2019, Donna Equipment signed a one-year, 8% interest bearing note payable for…

A: Note means an instrument acknowledging as debt due from one party to another party. Interest bearing…

Q: On 1st Sept 2020 Sun LLC has accepted a note receivable for RO 1000 from one of the accounts…

A: Days outstanding  from 1st step to 31 dec   =  122 Maturity period is less than it so total interest…

Q: On January 1, 2020, Company A issued 10% bearing note payable in ten semi-annual instalments every…

A: 1. Present value of the bonds = Present value of principal + Present value of interest payments =…

Q: ce value of P1,500,000.  The note is payable in four equal annual installments of P375,000 plus…

A: Notes Payable are the debt instrument which has been used by the organization to arrange a short…

Q: On January 1, 2021, IYY Inc. issued a 5,000,000 non-interest bearing note with maturity date of…

A: Issuing the financial instruments will increase the capital as well as the capital of the company.…

Q: On January 1, 2020, Company A issued 18% bearing note payable in ten semi-annual instalments every…

A: Data given: Issue at       01/01/2020 Interest rate = 18% (semi-annually ) = 18%/2= 9% Face value =…

Q: Blue Inc. has a year-end of June 30.  On December 1, 2020, the company signed a 10-month, 5% note…

A: Interest income for 7 months i.e. from Dec 1, 2020 to June 30 = 28,000 x 5% x 7/12…

Q: SPENCER CORP BORROWED $300,000 FROM NATIONAL BANK ON MAY 31 2019. THE ONE YEAR, 7% NOTE REQUIRED…

A: Interest expense: It can be defined as the cost incurred by the business in relation to the borrowed…

Q: [The following information applies to the questions displayed below.] On January 1, 2021, Eagle…

A: The note payable are reported as liabilities in the balance sheet. The accrued interest is the…

Q: On January 1, 2022, ABC Company issued 9% Note with face amount of P2,000,000 which matures on…

A: A note is a legal document representing a loan made from an issuer to a creditor or an investor.

Q: Cullumber Corporation issued a 4-year, $38,000, 4% note to Greenbush Company on January 1, 2025, and…

A: The notes are issued to raise money. It is a written promise by the issuer to repay the debt amount…

Q: On May 3, 2020, Leven Corporation negotiated a short-term loan of $685,000. The loan is due October…

A: Loan - $ 685,000 Interest – 6.86% Date borrowed= May 3 Date repaid = October 1

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A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Michek Company loans Sarasota Company $2,000,000 at 6% for 3 years on January 1, 2020. Michek…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: On January 1,2022, Ace Company finished landscaping services and accepted in exchange a 10% $400000…

A: An interest-bearing note is a debt instrument that bears interest over time. It is a promissory note…

Q: Crafty Cave Products borrowed $200,000 cash by issuing a 48-month, $246,660 zero coupon note on…

A: A promissory note is a legal document issued to raise money. It consists of promises made by the…

Q: On August 1, Year 1, Jackson Company issued a one-year $68,000 face value interest-bearing note with…

A: Interest accrued refers to the interest that has been earned or incurred but has not yet been paid…

Q: ne 8, Alton Co. issued an $79,432, 10%, 120-day note payable to Seller Co. Assuming a 360-day year…

A: Solution: Maturity value of the note is amount that is arrived by adding total amount of interest…

Q: A borrower has two alternatives for a loan: (1) issue a $510,000, 120-day, 9% note or (2) issue a…

A: One of the source used by the business entities in order to meet the financial requirements is issue…

Q: SPENCER CORP BORROWED $300,000 FROM NATIONAL BANK ON MAY 31, 2019. THE ONE YEAR, 7% NOTE REQUIRED…

A: Answer:   $12,250

Q: On January 1, 2020, Flannagan Fencing Corp. establishes a debt retirement fund to pay off a $500,000…

A: The mathematical equation is:

Q: the pita pit borrowed 197000 on november 1 2021 and signed a six month note bearing interest at 12%.…

A: Interest expense = Principal amount x Interest rate x Time period

Q: On January 1, 2020, MWB, Inc. borrowed cash by issuing a $600,000, 6-year note that specified 6%…

A: solution given Face value $600000 Life 6 year Coupon rate 6%   If interest to…

Q: Required information Use the following information for the Exercises below. (Algo) [The following…

A: The note payable are reported as liabilities in the balance sheet. The accrued interest is the…

Q: In January 1, 2020, Mega Corporation issued a $55,000, three-year, 6% installment note from Biggest…

A: In January 1, 2020, Mega Corporation issued a $55,000, three-year, 6% installment note from Biggest…

Q: Vargo Corp. owes $270,000 to First Trust. The debt is a 10-year, 12% note due December 31, 2020.…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: A borrower has two alternatives for a loan: (1) issue a $300,000, 120-day, 8% note or (2) issue a…

A: A Notes payable is the written promissory note in which one party agrees to pay the sum of amount to…

Q: ssuance and Interest Amortization for Zero Coupon Note (Straight Line) Kerwin Company borrowed…

A: Straight-line amortization is a way of allocating interest to a bond in a fair and equitable manner…

Q: On January 1, 2022, Balance Bar Co. lends Bio Foods $100,000 in exchange for a $100,000, 5-year note…

A: Since Balance Bar Co. lends Bio Foods $100,000 in exchange for a $100,000, 5-year note bearing…

Q: Sayed Company borrowed $40,000 on August 31, 2020, by issuing an 9-month, 9% interest-bearing note.…

A: Given, Interest rate = 9% Issuing Date = 31st August 2020 Borrowing Amount = $40,000

Q: 021, Eagle Company borrows $31,000 cash by signing a four-y nents of $9,360, consisting of accrued…

A: Amount borrowed = $31,000 Annual interest rate = 8% Year =  4 Annual payment = $9,360

Q: Cheyenne Corporation issued a 4-year, $31,000, 4% note to Greenbush Company on January 1, 2020, and…

A: Journal entries are prepared for entering transactions in the primary books of accounts by giving…

Q: On August 1, 2020, Vann Company’s P5,000,000 one year,non interest bearing note due July 31, 2021,…

A: Bonds payable is a long-term liability in which the bonds has been issued in lieu of amount borrowed…

Q: Cullumber Corporation issued a 4-year, $38,000, 4% note to Greenbush Company on January 1, 2020, and…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: Universal Travel Incorporated borrowed $518,000 on November 2024, and signed a twelve-month note…

A: Interest = Principal x Rate x Time

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.