I need this question answer general Accounting West Company borrowed $44,000 on September 1, 2016, from the ValleyBank. West agreed to pay interest annually at the rate of 6% per year.onSeptember from the Valley, Bank West agreed to pay interest annuallyat the rate of 6% per year. The note issued by West carried an 18-monthterm. Based on this information the amount of interest expenseappearing on West's 2016 income statement would be:a. $264b. $660c. $880d. $0

Step 1: Define Interest on Note PayableInterest on note payable is calculated using simple interest…

Answered: West Company borrowed $44,000 on…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

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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 June 1, 2025, Thomas Company borrowed $42,000 from a bank on a 7%, 8-month note payable. On August 1, 2026, Thomas Company borrowed $63,000 from a bank on a 16%, 9-month note payable. Calculate the total amount of interest expense related to these two loans that Thomas Company would report in its 2026 income statement.
Colson Company has a line of credit with Federal Bank. Colson can borrow up to $375,000 at any time over the course of the 2018 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first four months of 2018. Colson agreed to pay interest at an annual rate equal to 2.00 percent above the bank’s prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Colson pays 5.75 percent (3.75 percent + 2.00 percent) annual interest on $83,300 for the month of January. Month Amount Borrowedor (Repaid) Prime Rate forthe Month January $ 83,300 3.75 % February 117,700 2.75 March (19,400 ) 3.25 April 28,100 3.75 calculate the interest amount for the four months
B. ESD Company borrowed 5 million pesos from a bank on September 30, 2015. The loan principal is payable every six months starting march 31, 2016 at the rate of 1,000,000. The loan has an annual interest rate of 10%. Determine the interest cxpense related to this loan in 2015, 2016,2017 and 2018.
On October 1, 2023, Parton Industries borrowed $12 million cash to provide working capital. The loan was made by Second Bank under a short-term line of credit. Parton issued an 8-month, “noninterest-bearing note.” 8% is the bank’s stated “discount rate.” Parton’s fiscal period is the calendar year. In Parton’s 2023 income statement interest expense for the note will be:
Mission Corp. borrowed $25,000 cash on April 1, 2016, and signed a one-year 8%, interest-bearing note payable. The interest and principal are both due on March 31, 2017.What is the amount to be paid to the bank on March 31, 2017 for interest and principal (combined)?
On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $42,000 face value, four-year term note that had an 6 percent annual interest rate. The note is to be repaid by making annual cash payments of $12,121 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $22,260 cash per year. Prepare an income statement, a balance sheet, and a statement of cash flows for each of the four years.
Please provide answer this financial accounting question
Included in Allen Corp.'s balance sheet at June 30, 2015 is a 10%, $3,000,000 note payable. The note is dated October 1, 2013 and is payable in three equal annual payments of $1,500,000 plus interest. The first interest and principal payment was made on October 1, 2014. In Allen's June 30, 2015 balance sheet, what amount should be reported as accrued interest payable for this note? A. $75,000. B. $112,500. C. $337,500. D. $225,000.
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.
Frisco Company borrowed $76,000 cash on October 1, 2022, and signed a nine-month, 9% interest-bearing note payable with interest payable at maturity. The amount of interest expense to be reported during 2023 is which of the following? $3,420. $2,565. $1,710. $1,026.
Cars Inc. issued 120 day note in the amount of $360,000 on November 1, 2016 with an annual rate of 6% amount of interest has accrued as of December 31, 2016?
McLaughlin Inc. operates with a June 30 year-end. During 2017, the following transactions occurred: January 1: Signed a one-year, 10% loan for $35,000. Interest and principal are to be paid at maturity. January 10: Signed a line of credit with Little Local Bank to establish a $560,000 line of credit. Interest of 9% will be charged on all borrowed funds. February 1: Issued a $28,000 non-interest-bearing, six-month note to pay for a new machine. Interest on the note, at 12%, was deducted in advance. March 1: Borrowed $210,000 on the line of credit. June 1: Repaid $140,000 on the line of credit plus accrued interest. June 30: Made all necessary adjusting entries. August 1: Repaid the non-interest-bearing note. September 1: Borrowed $280,000 on the line of credit. November 1: Issued a three-month, 8%, $16,800 note in payment of an overdue open account. December 31: Repaid the one-year loan [from transaction (a)] plus accrued interest. can you help me write a balance/ income sheet…

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