A- Exotic furnishing Limited has a line of credit secured by the equity in the business the limit on the line of credit is $44,000exotic owed $26, 197.12 on its line of credit on March 1 the line of credit agreement requires a regular payment of dollar150 on the principal plus interest including overdraft interest by electronic transfer after closing on the last day of eachmonth overdraft interest is 21% percent the line of credit interest interest is variable it was 7.5% on March one 7.0%percent effective May 21 and 6% effective August 10 calculate the interest payments on March 31 April 30 May 31 June30 July 31 and August 31

The line of credit refers to a type of agreement between the bank and its customer. The customer can…

Answered: Exotic furnishing Limited has a line of…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

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K Suppose your business has secured a line of credit and receives the accompanying statement of account for the month of March. The limit on your line of credit is $1000.00. You receive daily interest of 1.7% p.a. on positive balances and pay daily interest of 6% p.a. on negative (line of credit) balances. Overdraft interest is 19% p.a. on the daily amount exceeding your line of credit limit. There is a service charge of $5.00 for each transaction causing an overdraft or adding to an overdraft. Use this information to complete parts (a) through (e) below. Click the icon to view the statement for the month of March. (a) Calculate the amount of interest earned. Total interest earned=$ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) W in O ра
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прапу What formula should Hardy Company uses add-on interest? Gordon Company signed a note payable on November 20. Gordon has a December 31 year-end. It naid the note, including interest, on the maturity date, February 20. What accounts did Gordon debit and what account did it credit on February 20? Lack Swanson gave a creditor a 90-dav eight percent note pavable for $7.200 on December 16. What ad-
part D E
1 - Jan Janus Corp. lent $66, 116 to Jeeter Company, accepting Jeeter's 2 year, $80,000 Date Account Title Debit Credit non -interest bearing note. The implied interest rate is 10%. Prepare Janus' journal entries for the initial transaction, the recognition of interest each year, and the collection of the $80,000 at maturity.
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Required information [The following information applies to the questions displayed below] Agrico Incorporated accepted a 8-month, 11% (annual rate), $5,000 note from one of its customers on July 15, 2022; interest is payable with the principal at maturity. b-1. Prepare the horizontal model to record collection of the note and interest at maturity. Note: Enter decreases to account balances with a minus sign. Do not round your intermediate calculation. Round your final answers to two decimal places. Assets Balance Sheet Liabilities Stockholders' Equity Net Income + + = Income Statement Revenues
Campus Flights takes out a bank loan in the amount of $200,500 on March 1. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 8%, recognized on December 31. (Round answers to the nearest whole dollar if needed.) A. Compute the interest recognized as of December 31 in year 1 rounded to the whole dollar. B. Compute the principal due in year 1.
A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
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.
Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?

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