None LECTURE EXAMPLES - LOANS1. Woodgrain Industries took out an operating loan with RBC for $20,000 at a fixed interest rate of 8% onSeptember 14. The operating loan requires a monthly fixed payment of $800 on the 14th of every month. Createthe first three months of its repayment schedule.DateBalancebeforeTransactionAnnualInterestRateNumberInterest Accruedof Days Charged InterestPayment (+)or Advance (-BalancePrincipalAmountafterTransaction9/14$20,00010/148%11/148%12/148%$800$800$800

A repayment schedule offers a methodical and transparent approach to paying back a loan or debt over…

Answered: LECTURE EXAMPLES - LOANS 1. Woodgrain…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...

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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
1. Loan Amortization Schedule (P/Y = C/Y) Details: RBC has provided a $50,000 loan to Capilano Custom Cabinets Inc. at an interest rate of 6% compounded monthly. The loan is to be paid back in equal payments at the end of each month over an 18-month term. I/Y 5.5% Pmt # P/Y 12 Payment Total Interest paid on loan C/Y 12 N 18 Interest Portion PV PMT Principal Portion FV Principal Balance
ABC Bank granted a loan to a client on January 1, 20x1. The interest on the loan is 10% payable annuallystarting December 31, 20x1. The loan matures in four years on December 31, 20x4. Pertinent information onthe loan is provided below: Principal amount 2,000,000Origination fee 154,430Direct origination cost 32,890Indirect origination cost 5,000After considering the origination fee received from the borrower and the direct origination cost incurred, theeffective interest rate on the loan is 12%.1. At what amount shall the loan be initially measured on January 1, 20x1?2. How much shall be reported as interest income for 20x1?3. What is the carrying amount of the loan on December 31, 20x1?
Find the interest on the following loan. $5324 at 8%; loan made on August 12 and due December 15 The simple interest for this loan is $ (Round to the nearest cent as needed.)
At a payday lending company, a loan of $500 will accrue interest as follows: Loan Duration 1 day 14 days 30 days Interest Owed $2.75 $38.30 $76.10 (a) Using the interest owed on a 1-day loan, find the equivalent annual simple interest rate for the loan. Use a 365-day year. Round answers to two decimal places. (b) Instead of borrowing from a payday lender, $500 is borrowed from a bank charging 6.5% simple interest. Find the amount of interest owed after 30 days. Use a 365-day year. $ %
Saved Prepare an amortization schedule for a five-year loan of $70,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "O" wherever required.) Year Beginning Balance Total Payment Interest Payment Principal Payment Ending Balance 1 3 4. How much interest is paid in the third year? (Do not round intermediate-calculations 2. 5
Create the amortization schedule for a loan of $15,000, paid monthly over three years using a 9 percent APR. Enter the data for the first three months. (Round your answers to 2 decimal places.) Month 1 2 3 Beginning Balance Total Payment Interest Paid $ 15,000.00 $ 477.00+-0.5% $ 112.50+-0.5% 477.00+/-0.5% 109.77+/-0.5% 107.01+/-0.5% 477.00+/-0.5% 14,635.50+/-0.1% 14,268.27+/-0.1% Principal Paid $ 364.50+-0.5% Ending Balance $ 14,635.50+/-0.1% 14,268.27+/-0.1% 367.23+/-0.5% 369.98+/-0.5% 13,898.29+/-0.1%
Set up expressions initially with functional notation like P/F,i,n 1. The owner of a small business borrows 40,000 on a 2-year contract at 7% interest compounded annually, with the loan to be repaid in two equal EOY installments. The first payment will be deferred one year. Determine the loan payment (installment) amount to the nearest cent.
Prepare an amortization schedule for a five-year loan of $59,000. The interest rate is 7 percent per year, and the loan calls for equal annual payments. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Year BeginningBalance TotalPayment InterestPayment PrincipalPayment EndingBalance 1 $ $ $ $ $ 2 3 4 5 How much total interest is paid over the life of the loan? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Total interest paid $
Compute the rate (in %) for the loan. Round answers to the nearest tenth of a percent; use ordinary interest when time is stated in days. Rate (%) Principal $54,000 Enter a number. X % Time 60 days Interest $873
On January 1, Year 1, Mahoney Company borrowed $168,000 cash from Sun Bank by issuing a 5-year, 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, Year 1. The annual payment on the loan equals $42.077, What is the amount of principal repayment included in the payment made on December 31, Year 1? Multiple Choice Ο Ο Ο Ο $13,440 $37.467 $40,725 $28,637
You have taken a loan of $78,000.00 for 20 years at 4.9% compounded quarterly. Fill in the table below, rounding all values to the nearest cent. Note that the principal column is listed before the interest column even though the interest calculation is done first. Many lending institutions use this order in the amortization schedules they provide to their customers. Payment number Payment amount Principal Amount Interest 0) 1) 2) 3) $ S $ $ s Balance $78,000.00 $

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