Two banks in the area offer 20-year, $270,000 mortgages at 5.6 percent and ch $4,300 loan application fee. However, the application fee charged by Insecurity and Trust is refundable if the loan application is denied, whereas that charged E Greedy and Sons Mortgage Bank is not. The current disclosure law requires th fees that will be refunded if the applicant is rejected be included in calculating the but this is not required with nonrefundable fees (presumably because refundable are part of the loan rather than a fee). What are the EARS on these two loans? What are the APRS? (Do not round interme calculations and enter your answers as a percent rounded to 2 decimal places, 32.16.)

Two banks in the area offer 20-year, $270,000 mortgages at 5.6 percent and ch $4,300 loan application fee. However, the application fee charged by Insecurity and Trust is refundable if the loan application is denied, whereas that charged E Greedy and Sons Mortgage Bank is not. The current disclosure law requires th fees that will be refunded if the applicant is rejected be included in calculating the but this is not required with nonrefundable fees (presumably because refundable are part of the loan rather than a fee). What are the EARS on these two loans? What are the APRS? (Do not round interme calculations and enter your answers as a percent rounded to 2 decimal places, 32.16.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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On December 31, 2020, Larkspur Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Larkspur Co. agreed to accept a $ 252,100 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Larkspur is much more creditworthy and has various lines of credit at 6%.Click here to view factor table. https://education.wiley.com/content/Kieso_Intermediate_Accounting_17e/media/simulations/interest_rate_tables.pdf
You have recorded a revolving line of credit on your company's financial statements due within the next ten (10) months as a long-term liability. The board of directors of the company has asked you to explain why you have done so. The company has been in default with its loan covenants, but prior to the issuance of the financial statements, the bank granted a waiver. With reference to the above scenario, answer the following questions in 1 - 2 paragraphs each. What is a line of credit? What promulgated accounting literature would your use to support your rationale described in your scenario? What criteria should be met prior to reflecting this loan as a long-term liability? Why would recording the loan as a long-term liability from a business standpoint of view make sense apart from compliance with promulgated standards? What footnote disclosure would be necessary for the line of credit?
Hybrid Solutions have many debtors and therefore keep records of transactions with Indvidual debtors In a Debtors Subsidiary ledger (DL) while the general ledger houses the Debtors Control account. Total of the list of debtors is reconciled at least once a month with the balance of the Debtor's Control Account. The following is the summarised list of deotors at 31 August 2021 before any adjustments were made for erors and omissions: Debtors' lst - Balances before corections for errors and omissions DL Balance Amount -R Follo Andy DL1 15 070 Beauty DL2 19 240 Cindy DL3 13 760 AN Other Debtors DL 4 to 79 94 880 Total of the llst of debtors 142 950 All the totals from the subsidary joumals have been posted to the Deotors' Control account and a debit balance of R141 500 at 31 August 2021as shown below. Errors and omisslons stil to be taken Into account for the reconcillation of the llat of debtors and the Debtors'Control account at 31 August 2021: 1. Sales of R3 680 to Cindy were…
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On December 31, 2020, Sarasota Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Sarasota Co. agreed to accept a $337,600 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Sarasota is much more creditworthy and has various lines of credit at 5%. Click here to view factor table. (a) Your answer is partially correct. Prepare the journal entry to record the transaction of December 31, 2020, for the Sarasota Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Dec. 31, 2020 Account Titles and Explanation Notes Receivable Service Revenue Discount on Notes Receivable Debit…
Max Corp. sold goods for $36,000 on July 17, 2020, and accepted a 12%, 90-day note. On August 1, the note was sold to a bank at a 15% discount rate. Required: a. Compute the proceeds. Assume a 360-day year. b. If the maker dishonored the note at maturity, prepare the entry for Max Corp. assuming $75 of bank protest fees. If an amount box does not require an entry, leave it blank.
A bank offers 35-year, $175,000 mortgages at 4.6 percent and charges a $3,600 refundable loan application fee. The current disclosure law requires that any fees that will be refunded if the applicant is rejected be included in calculating the APR What is the APR that they are required to disclose? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) APR Insecurity Bank and trust (Refundable) % %
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