On February 20th, a 5 month note for $2,900 was received by Lucky Company to settle an amount owing from a customer. It bears interest at the rate of 8% per annum. Assume the note is settled on maturity and Lucky makes the appropriate entry. A year has 364 days or 52 weeks. Required 1: The amount (simple interest plus principal) received by Lucky at maturity is: $ Required 2: If the note has monthly compounded interest, the total amount of interest received by Lucky at maturity is: $ Required 3: If the note has biweekly compounded interest, the total amount of principal received by Lucky at maturity is: $

On February 20th, a 5 month note for $2,900 was received by Lucky Company to settle an amount owing from a customer. It bears interest at the rate of 8% per annum. Assume the note is settled on maturity and Lucky makes the appropriate entry. A year has 364 days or 52 weeks. Required 1: The amount (simple interest plus principal) received by Lucky at maturity is: $ Required 2: If the note has monthly compounded interest, the total amount of interest received by Lucky at maturity is: $ Required 3: If the note has biweekly compounded interest, the total amount of principal received by Lucky at maturity is: $

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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The Beta Company made a sale for $340,000 on credit. It accepted a note receivable from the customer, payabl years. A 4% interest is due from the customer every December 31st. The customer's borrowing rate is 6%. The i revenue to be recorded on the note receivable at the end of the first year is (ignore decimals in your calculations Select one: a. $19,309 Ob. $12,872 c. $13,600 X d. $22,808
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An item is sold for an initial installment of $600 and 18 payments of $500 at the end of each month, recognizing an interest rate of 1.75% per month, if at the time of paying the eleventh installment, you decide to cancel the amount of the debt . How much will you have to pay at that time for the purchased item?
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Campus Flights takes out a bank loan in the amount of $145,847 on March 1. The terms of the loan include a repayment of principal in 7 equal installments, paid annually from March 1. The annual interest rate on the loan is 10%, recognized at the end of the 7 equal installments. Compute the interest recognized in year 1 rounded to the whole dollar.
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