Janet baker owes $108000 on a 10%, 130-day note. On fay 75 she pays $32,400 on the note. On day 120, she pays an additional $37, 800. Based on the U.S rule calculate the following. Adjusted balance after the first payment. Adjusted balance after the second payment. Balance at maturity.

Janet baker owes $108000 on a 10%, 130-day note. On fay 75 she pays $32,400 on the note. On day 120, she pays an additional $37, 800. Based on the U.S rule calculate the following. Adjusted balance after the first payment. Adjusted balance after the second payment. Balance at maturity.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Janet baker owes $108000 on a 10%, 130-day note. On fay 75 she pays $32, 400 on the
note. On day 120, she pays an additional $37, 800. Based on the U.S rule calculate the
following. Adjusted balance after the first payment. Adjusted balance after the second
payment. Balance at maturity.

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Step 1: Explanation of Note Payable

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Step 2: The adjusted balance after first payment has been calculated as follows:

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Step 3: The calculation of adjusted balance after the second payment has been made as follows:

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Step 4: The calculation of balance at maturity has been made as follows:

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