What i s the adjustment amount to accrue interest on december 31,2017 ? Salem Corporation borrowed $45,000 on June 1st, 2016. Salemsigned a 3-year 6% interest-bearing note. What is the adjustmentamount to accrue interest on December 31, 2017?a. $2,700b. $1,350c. $900d. $675

Formula for Interest Accrual:Interest=Principal×Rate×Time Given Data:Principal (P) = $45,000 Annual…

Answered: Salem Corporation borrowed $45,000 on…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

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Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market rate of 4%. The bonds paid interest semi-annually on June 30 and Dec. 31. How much money did the company receive when the bonds were issued? The bonds would be quoted at what rate?
QUESTION: On June 30, 2009, Sideways Movers had $243,000 in current assets and $211,000 in current liabilities. On August 1, 2009, Sideways received $50,000 from an issue of promissory notes that will mature in 2012. The notes pay interest on February 1 at an annual rate of 6 percent. Sideways' fiscal year ends on December 31. What is the interest expense for December 31?
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Salem Corporation borrowed $45,000 on June 1st, 2016. Salem signed a 3-year 6% interest-bearing note. What is the adjustment amount to accrue interest on December 31, 2017? a. $2,700 b. $1,350 c. $900 d. $675