Need help with this question solution general accounting Greenbird Bank lends money to Hall Company and receives asigned promissory note in return. The details of the note are shownbelow:Principal$8,700Interest Rate 10%Term45 daysCalculate the amount of interest earned by Greenbird Bank for theterm of the note.Note: To simplify the arithmetic in the problem, use 360 days for thenumber of days in a year.

Given: Principal = $8,700Interest Rate = 10% or 0.10Time = 45 daysNumber of days in a year = 360…

Answered: Greenbird Bank lends money to Hall…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 16Q: Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual...

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A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
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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