Answered: What is the correct debit/credit entry…

What is the correct debit/credit entry for... Company borrows $3 million from a bank with interest of 6% per year due and payable in 5 years

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Cerise Company would record a note payable of________, if the terms of the loan with a bank are as…

A: PRESENT VALUEPresent Value is the Current Value of Future Cash Flows at a Discounting Rate.Present…

Q: Thornton borrowed $250,000 at a rate of 7.25%, simple interest, with interest paid at the end of…

A: Simple interest is simple interest that means there is interest on the principal amount only and…

Q: Idaho International Inc. borrows $86,600 from a bank at 3.08% compounded semi-annually for 7 years…

A: Here,Compound = Semiannually = 2Present Value = pv = $86,600Interest Rate = r = 3.08 / 2 = 1.54%Time…

Q: An investor purchases a 90-day bank bill with a face value of $1 million at 4.88%. Calculate the…

A: In a purchase and sale transaction of a bank bill, the yields at the time of purchase and sale…

Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 6%, on a 90-day,…

A: Interest charged by the bank -Interest is still calculated as Principal x Interest x Frequency of…

Q: A loan of $21,224 was repaid at the end of 14 months. What size repayment check (principal and…

A: Interest is the amount charged for amount of of loan borrowed.Simple Interest= Amount borrowed *…

Q: A firm had credit sales of $15,750,000 last year and its days sales outstanding was 65 days. What…

A: Given, Credit sales = $15,750,000. Days sales outstanding = 65 days.

Q: Bank A offers accounts that pay 5% compounded daily and Bank B offers accounts that pay 12%…

A: Particulars Bank A Bank B Deposit Amount 12000 12000 Rate of Interest 5% 12% Compounding…

Q: The principal represents an amount of money deposited in a savings account subject to compound…

A: Data given: Principal: $6500Rate: 7%Compounded: quarterlyTime: 4 years

Q: Suppose that you took out a loan at 10% interest for 283 days. If the amount of interest was…

A: Interest rate = 10% Period = 283 days Amount of interest = $852.88

Q: The principal represents an amount of money deposited in a savings account subject to compound…

A: Future value refers to the value of the current asset at some future date affected by interest…

Q: A local business received a $45,000 loan at 4.95% compounded monthly. The business settled the loan…

A: Loan repayments of equal amounts can be defined as an annuity. The principal amount of loan is the…

Q: The following certificate of deposit (CD) was released from a particular bank. Find the compound…

A: Deposit amount (P) = $3500 Interest rate (r) = 8% Number of compounding per year (m) = 365 Period…

Q: The amount that accumulates in 3 years if $ 2,500 is deposited at the beginning of each month in a…

A: Monthly payment = $2,500 Interest rate = 6.3% Time period = 3 Years

Q: 1. Assuming that you deposited $100 today in a bank at 6 percent annual interest rate. After four…

A: The objective of the question is to calculate the future value of a single sum of money invested…

Q: The Malibu Corporation has annual credit sales of $25 million. The average collection period is 27…

A: Average collection period is the formula which is used for determining the average days will be…

Q: A bank lends some money to a business. The business will pay the bank a single payment of $180,000…

A: The present value function can be used to derive the present value of a future sum or the present…

Q: A Company borrowed money from a local bank. The note the company signed requires five annual…

Q: nterest rate charged on the loan was 3.5% co

A: Answer : Amount = $15000 Time = 6 year 6 month Rate of interest = 3.5% Interest compounded monthly…

Q: An amount of $3000.00 is deposited in a bank paying an annual interest rate of 5 % compounded daily.…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

Q: A bank offers a home buyer a 30-year loan at 6% per year. If the home buyer borrows $140,000 from…

A: Solution:-When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: Find the size of the monthly bank payment: P=$75,000 interest= 7 3/4% time= 4 months

A: Using excel PMT function

Q: Royal Bank issued a loan of $90,000 at 6.94% compounded semi-annually. The loan was repaid by…

A: The periodic payment is the regular and equal repayment of the loan amount over the period of the…

Q: The following certificate of deposit (CD) was released from a particular bank. Find the compound…

A: A Certificate of Deposit refers to a time deposit that provides the holder with fixed interest for a…

Q: The following certificate of deposit (CD) was released from a particular bank. Find the compound…

A: The compound amount is the future value or accumulated value. Compound amount = Amount of deposit *…

Question

What is the correct debit/credit entry for... Company borrows $3 million from a bank with interest of 6% per year due and payable in 5 years

Expert Solution

Step 1 : Notes

There are 3 golden rules for recording journal entry :

1. Debit what comes in , Credit what goes out .

2. Debit the receiver , Credit the giver .

3 Debit all expenses and losses , Credit all income and gains .

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

An investor purchases a 90-day bank bill with a face value of$1million at4.88% . Caliculate the capital gain or loss (in $) from their investment if the bill is sold 10 days later at 4.55% .
How much would you have to deposit into a bank at the beginning of every 6 months to have a total of $10 000 in 8 years if interest is 7% compounded quarterly? $459.47 $475.15 $625.00 $475.69
Canadian Western Bank issued a loan of $59,000 at 4.33% compounded semi- annually. The loan was repaid by payments of $730 at the end of every month. a. How many payments were required to pay off the loan? (Enter a whole number) b. What was the total interest paid in the 4th year? (Enter starting and ending periods as P1 and P2 and the total interest paid as a positive value to the nearest cent.) P1 = P2= = Total interest paid in the 4th year = $ c. What was the size of the final payment? (Enter a positive value to the nearest cent) $
5. Find the average receivables
The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. A. Find how much money there will be in the account after the given amount of years. B. Find the interest earned. Principal $7000Rate 4% Compounded Semi-annually Time 3 years