Answer Provide with option On November 1, 2016. Tim's Toys borrows $31,200,000 at 7% tofinance the holiday sales season. The note is for a 6-month term-endboth principal and interest are payable at maturity.What is the balance of interest payable for the loan as of December31, 2016?a. $91,000b. $1,092,000c. $182,000d. $364,000

Step 1: Definition of Interest Payable:Interest payable is a liability account used to record…

Answered: On November 1, 2016. Tim's Toys borrows…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

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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
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?
Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
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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
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Discount Mart borrows $400,000 on November 1, 2020 with a 6-month loan that has an annual interest rate of 6% payable when the loan is due. What amounts related to this loan will Discount Mart report on its financial statements for the year ended December 31, 2020? Select one: a. Income statement: $4,000 interest expense; Balance sheet: $400,000 loan payable and $4,000 interest payable; Cash flow statement: $400,000 inflow b. Income statement: $4,000 interest expense; Balance sheet: $400,000 loan payable; Cash flow statement: $396,000 inflow c. Income statement: 0; Balance sheet: $400,000 loan payable $4,000; Cash flow statement: $400,000 net inflow d. Income statement: $4,000 interest expense; Balance sheet: $400,000 loan payable and $4,000 interest payable; Cash flow statement: $396,000 inflow
Sylvestor Systems borrows $161,000 cash on May 15, 2017, by signing a 30-day, 5% note. 1. On what date does this note mature? June 14, 2017 2. Assume the face value of the note equals $161,000, the principal of the loan. (a) Prepare the journal entry to record issuance of the note. Date General Journal Debit Credit May 15 cash 161,000 notes payable 161,000 b) First, complete the table below (picture #2: find the missing total interest) to calculate the interest expense at maturity. Use those calculated values to prepare your journal entry to record payment of the note at maturity. (Use 360 days a year. Round final answers to the nearest whole dollar.)
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Sylvestor Systems borrows $161,000 cash on May 15, 2017, by signing a 30-day, 5% note. 1. On what date does this note mature? multiple choice June 13, 2017 June 14, 2017 June 15, 2017 June 16, 2017 June 17, 2017 2. Assume the face value of the note equals $161,000, the principal of the loan. (a) Prepare the journal entry to record issuance of the note.

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