The following note transactions occurred during the year for Towell Company: On Nov. 25, Towell issued a 90-day, 9%, note payable for $40,000 to Hyatt Company for merchandise. On Dec. 7, Towell signed a 120-day, $60,000 note with the bank at 10%. On Dec 22, Towell gave Barr, Inc. a $12,000, 10%, 60-day note in payment of its account. Calculate the amount of the necessary interest accrual for each note payable at December 31. (Round to nearest whole dollar.) Lender Interest accrual Hyatt Company note Bank note Barr, Inc. note
The following note transactions occurred during the year for Towell Company: On Nov. 25, Towell issued a 90-day, 9%, note payable for $40,000 to Hyatt Company for merchandise. On Dec. 7, Towell signed a 120-day, $60,000 note with the bank at 10%. On Dec 22, Towell gave Barr, Inc. a $12,000, 10%, 60-day note in payment of its account. Calculate the amount of the necessary interest accrual for each note payable at December 31. (Round to nearest whole dollar.) Lender Interest accrual Hyatt Company note Bank note Barr, Inc. note
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following note transactions occurred during the year for Towell Company:
On Nov. 25, Towell issued a 90-day, 9%, note payable for $40,000 to Hyatt Company for merchandise.
On Dec. 7, Towell signed a 120-day, $60,000 note with the bank at 10%.
On Dec 22, Towell gave Barr, Inc. a $12,000, 10%, 60-day note in payment of its account.
Calculate the amount of the necessary interest accrual for each note payable at December 31.
(Round to nearest whole dollar.)
| Lender | Interest accrual |
|---|---|
| Hyatt Company note | |
| Bank note | |
| Barr, Inc. note |
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