TABLE 7.1Exact days-in-a-year calendar (excluding leap year)*Day ofmonth1234567891011121314151617181931 January 28 February132233334435363738394041424344454647484950567891011121314151617181931 March606162انتا63646566676869707172737475767.77830 April91929394959697989910010110210310410510610710810931 May12112212312412512612712812913013113213313413513613713813930 June15215315415515615715815916016116216316416516616716816917031 July18218318418518618718818919019119219319419519619719819920031 August 30 September 31 October 30 November 31 December213244274305214245275306215246276307216247277308217248278309218249279310219250280311220251281312221252282313253283314254284315285316286317287318288319289320290321291322292323222223224225226227228229230231255256257258259260261262335336337338339340341342343344353345346347348349350351352 On May 3, 2020, Leven Corporation negotiated a short-term loan of $685,000. The loan is due October 1, 2020, and carries a 6.86%interest rate. Use ordinary interest to calculate the interest.)What is the total amount Leven would pay on the maturity date? (Use Days in a year table.)Note: Do not round intermediate calculations. Round your answer to the nearest cent.Maturity value

Loan - $ 685,000 Interest – 6.86% Date borrowed= May 3 Date repaid = October 1

Answered: On May 3, 2020, Leven Corporation…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On January 1, 2021, Banco de Oro made a 1,000,000 8% loan with interest receivable at the end of each year in the amount of 80,000 and the principal amount to be received at the end of five years. At the end of 2021, the borrower is experiencing financial difficulties so the interest for the first year in the amount of 80,000 has not yet been received. The borrower negotiated a restructuring of the loan. The payment of all of the interest for 5 years will be delayed until the end of the 5-year loan term. In addition, the amount of principal repayment will be dropped from P1,000,000 to P500,000. The PV of 1 at 8% for 4 periods is 0.735. No interest revenue has been recognized in 2021 in connection with the loan. What amount should be reported as interest income for 2022?
CPA Bank Co. loaned P6,750,000 to a borrower on January 1, 2018. The terms of the loan were payment in full on January 1, 2023 plus annual interest payment at 12%. The interest payment was made as scheduled on January 1, 2019. However, due to financial setbacks, the borrower was unable to make the 2020 interest payment. The bank considered the loan impaired and projected the cash flows from the loan on December 31, 2020. The bank has accrued the interest on December 31, 2019, but did not continue to accrue interest for 2020 due to the impairment of the loan. The projected cash flows are: December 31, 2021, P1,125,000; December 31, 2022, P1,500,000; December 31, 2023, P1,875,000 and December 31, 2024, P2,250,000. The present value of 1 at 12% is 0.89 for one period, 0.80 for two periods, 0.71 for three periods and 0.64 for four periods. What is the carrying amount loan receivable as of December 31, 2021?
B10.
Benjamin Co. borrowed money on September 1, 2020. The loan had the following terms. Length: 5 years Interest: 10% Amount: $120,000 Payments per year: 1 Benjamin Co. has a year end of December 31. NOTE: You may use your financial calculator or you may use the present value annuity factor, which is 3.7908. REQUIRED: Journalize the accrual on December 31 and the 1st payment on Aug 31, 2021 below: Date Account Title and Explanation PR Debit Credit
ou were paying your fully amortising loan at 8.2% per annum for 12 years. The current monthly payment is $1,492 per month. What is the remaining loan balance at the end of year 2? Please rounded your answer to two decimal points (e.g. 8000.158 is rounded to 8000.16)
A debt of $3726.12 is due August 1, 2022. What is the value of the obligation on February 1, 2015, if money is worth 9% compounded monthly? The value of the obligation is $ (Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
On January 1, 2022, Slack Company finished legal services and accepted in exchange a 5% $400,000 promissory note with a due date of December 31, 2024. Interest is receivable on January 1 of each year. Notes with similar risk have a market rate of interest of 10%. Set financial calculators to zero decimal place. Required: (a) Determine the value of the following: N = Answer 1 Question 3 I/Y = Answer 2 Question 3 PMT = $Answer 3 Question 3 FV = $Answer 4 Question 3 (b) The present value of the note was $Answer 5 Question 3 (c) Prepare a Schedule of Note Discount/Premium Amortization for Slack Company under the effective interest method. Slack Company Schedule of Note Discount/Premium Amortization Effective Interest Method Date Cash Interest Amortized Amount Carrying Value of Note Jan 1, 2022 $Answer 6 Question 3 Dec 31, 2022 $Answer 7 Question 3 $Answer 8 Question 3 $Answer 9 Question 3 Answer 10 Question 3 Dec 31,…
On May 3, 2020, Leven Corporation negotiated a short-term loan of $645,000. The loan is due October 1, 2020, and carries a 5.30% interest rate. Use ordinary interest to calculate the interest. What is the total amount Leven would pay on the maturity date? (Use Days in a year table.) Note: Do not round intermediate calculations. Round your answer to the nearest cent. Maturity value
Barton Chocolates used a promissory note to borrow $1,000,000 on July 1, 2015, at an annualinterest rate of 6 percent. The note is to be repaid in yearly installments of $200,000, plusaccrued interest, on June 30 of every year until the note is paid in full (on June 30, 2020). Showhow the results of this transaction would be reported in a classified balance sheet prepared as ofDecember 31, 2015.
Hi there, quick question. For an loan with a capital amount of 2500, initiation fee of 315, interest rate of 5%, initiation of loan takes place 04/01/2021 and first paid date is 02/02/2021 (Active for 29 Days), the calculated interest for this period was calculated to be 360.45. Interest is calculated using compound interest. Is there a way to work backwards to obtain the formula? To determine the accuracy.
On May 3, 2020, Leven Corporation negotiated a short-term loan of $870,000. The loan is due October 1, 2020, and carries a 6.80% interest rate. Use ordinary interest to calculate the interest. What is the total amount Leven would pay on the maturity date? (Use Days in a year table.) Note: Do not round intermediate calculations. Round your answer to the nearest cent. Maturity value:
If you borrow $1000.00 on May 1, 2019, at 10% compounded semi - annually, and interest on the loan amounts to $154.87, on what date is the loan due? The due date is (Round down to the nearest day.)

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS