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…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 1EB: Everglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of the loan...

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Loans Scotiabank approved a $230.000.00 line of credit for Buhler Industries at prime + 1%. It requires only the repayment of accrued interest on the 24th of each month which is automatically deducted from the checking account of Buhler Industries. Buhler took out an advance on December 6 for $160,000.00 and made a payment of $130,000.00 on January 16 The prime rate was 5.25% initially and increased to 6.5% on January 7. Complete the repayment schedule below by filling in the payment and principal amounts. Payment Date Balance Annual before Interest Transaction Rate Number of Days Interest Accrued Charged Interest (+) or Principal Balance after Advance Amount Transaction (-) Dec 6 $160,000.00 Dec 24 $160.000,00 $160,000.00 Jan 7 Jan 16 $160,000.00 $30,000.00 Jan 24 6.25% 18/365 7.5% 8/365 6.25% 14/365 $383.56 7.5% 9/365 $295.89 $679.45 $49.32 $728.77 $493.15 $493.15 $383.56 $160,000.00 $160,000.00 $30,000.00 $30,000.00 Notes You con can partial credit on this problem
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
Loans Scotiabank approved a $230,000.00 line of credit for Buhler Industries at prime + 1%. It requires only the repayment of accrued interest on the 24th of each month, which is automatically deducted from the checking account of Buhler Industries. Buhler took out an advance on December 6 for $160,000.00 and made a payment of $130,000.00 on January 16. The prime rate was 5.25% initially and increased to 6.5% on January 7. Complete the repayment schedule below by filling in the payment and principal amounts. Date Balance Annual before Interest Transaction Rate Number Interest of Days Charged Accrued Interest Payment (+) or Advance (-) Principal Balance after Amount Transaction Dec 6 Dec 24 $160,000.00 $160,000.00 6.25% 18/365 $493.15 $493.15 $160,000.00 Jan 7 6.25% $160,000.00 14/365 $383.56 $383.56 $160,000.00 Jan 16 $160,000.00 7.5% 9/365 $295.89 $679.45 $30,000.00 Jan 24 $30,000.00 7.5% 8/365 $49.32 $728.77 $30,000.00 You can earn partial credit on this problem.
Nates Payable A business issued a 90-day, 6% nole for $67,000 bo a creditor on account, [llustrate the effacts on the accounts and finannal statamants of recording (a) L'ie ssuance at the note and (b) the payment of the rote at maturity, including interest If ne accaunt or activity is affacted, selact "Na affect from the drapdewn list and eave the correspording umber entry box alar k. Enter account cecreeses end cash outfiows as negative amcunts.
On October 1, Black Company receives a 8% interest-bearing note from Reese Company to settle a $18,600 account receivable. The note is due in six months. At December 31, Black should record interest revenue of Oa. $369 Оb. $372 Ос. $382 Od. $379
None
On January 1, 20x1, Next Co. obtains a P4,000,000 bank loan due on December 31, 20x4. Interest of 12% is due annually. The bank charges Next Co. an 11.19% nonrefundable loan origination fee. The effective interest rate on the loan is approximately equal to a. 11.19% b. 12% c . 16 % d. 17.37%
Entries for notes payable A business issued a 60-day, 10% note for $94,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Assume a 360 days in a year. If an amount box does not require an entry, leave it blank. If required, round yours answers to whole dollar. Transaction Account Debit Credit a. - Select - - Select - - Select - - Select - b. - Select - - Select - - Select - - Select - - Select - - Select -
Help Save & Exit On April 12, Hong Company agrees to accept a 60-day, 6%, $6,900 note from Indigo Company to extend the due date on an overdue account. What is the journal entry that Indigo Company would make, when it records payment of the note on the maturity date? (Use 360 days a year.) Multiple Choice Debit Notes Payable $6,900; debit Interest Expense $69; credit Cash $6,969. Debit Notes Payable $6,900; credit Interest Expense $69, credit Cash $6,831. Debit Cash $6,969; credit Interest Revenue $69; credit Notes Receivable $6,900. Debit Notes Payable $6,900; debit Interest Expense $104; credit Cash $7,004. Debit Cash $6.969; credit Interest Revenue $69; credit Notes Payable $6,900.
Accrued Interest PayableCompute the interest accrued on each of the following notes payable owed by Northland, Inc., on December 31:Use 360 days for calculations and round the nearest dollar. Lender Date of Note Principal Interest Rate (%) Term Maple 11/21 $18,000 10 120 days Wyman 12/13 5,000 8 90 days Nahn 12/10 16,000 12 60 days Lender Accrued Interest Maple Answer Wyman Answer Nahn Answer
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