Bundle: College Accounting, Chapters 1-27, Loose-Leaf Version, 22nd + CengageNOWv2, 2 terms Printed Access Card
22nd Edition
ISBN: 9781305930421
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 17, Problem 2SEA
To determine
Calculate interest for the following notes.
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Calculating Interest
Using 360 days as the denominator, calculate interest for the following notes using the
formula I = P x R × T. Round your answers to the nearest cent.
Principal Rate
Time
Interest
$4,100
6.00%
30 days
1,000
7.50
60
3,500
8.00
120
950
6.80
95
1,250
7.25
102
2,600
7.00
90
How do I find the periodic interest rate for the following?
Journal Entries (Note Received, Renewed, and Collected)
Jan.
Received a 30-day, 6% note in payment for merchandise sale of $20,000.
16
Feb. Received $100 (interest) on the old (January 16) note; the old note is renewed for 30
15
days at 7%.
Mar.
Received principal and interest on the new (February 15) note.
17
19 Received a 60-day, 6% note in payment for accounts receivable balance of $8,000.
May Received $80 (interest) plus $1,000 principal on the old (March 19) note; the old note
18 renewed for 60 days (from May 18) at 6%.
July
Received principal and interest on the new (May 18) note.
17
Prepare general journal entries for the transactions. Assume 360 days in a year.
Page: 1
ACCOUNT TITLE DOC. POST.
NO. REF.
DATE
DEBIT CREDIT
20--
1
Jan. 16
3
4
Feb. 15
4
6
7
8
9
Mar. 17
9
10
10
11
11
12
12
13 Mar. 19
13
14
14
15
15
16 May 18
16
17
17
18
18
19
19
20
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21 July 17
21
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in
Chapter 17 Solutions
Bundle: College Accounting, Chapters 1-27, Loose-Leaf Version, 22nd + CengageNOWv2, 2 terms Printed Access Card
Ch. 17 - The maturity value of a note includes both...Ch. 17 - Prob. 2TFCh. 17 - The difference between the maturity value of a...Ch. 17 - Prob. 4TFCh. 17 - When a dishonored note is collected, interest is...Ch. 17 - Principal plus interest equals ______ of a note....Ch. 17 - Prob. 2MCCh. 17 - Prob. 3MCCh. 17 - Prob. 4MCCh. 17 - Accrued interest payable is reported as a ______...
Ch. 17 - Prob. 1CECh. 17 - Prob. 2CECh. 17 - Prob. 3CECh. 17 - Prob. 1RQCh. 17 - Prob. 2RQCh. 17 - Prob. 3RQCh. 17 - Prob. 4RQCh. 17 - Prob. 5RQCh. 17 - Prob. 6RQCh. 17 - Prob. 7RQCh. 17 - Prob. 8RQCh. 17 - Prob. 9RQCh. 17 - On which notes receivable and notes payable is it...Ch. 17 - Prob. 11RQCh. 17 - When a business borrows money from a bank on a...Ch. 17 - What kind of account is Discount on Notes Payable,...Ch. 17 - Prob. 14RQCh. 17 - Prob. 15RQCh. 17 - TERM OF A NOTE Calculate total time in days for...Ch. 17 - Prob. 2SEACh. 17 - DETERMINING DUE DATE Determine the due date for...Ch. 17 - JOURNAL ENTRIES (NOTE RECEIVED, RENEWED, AND...Ch. 17 - Prob. 5SEACh. 17 - JOURNAL ENTRIES (ACCRUED INTEREST RECEIVABLE) At...Ch. 17 - JOURNAL ENTRIES (NOTE ISSUED, RENEWED, AND PAID)...Ch. 17 - JOURNAL ENTRIES (NOTE ISSUED FOR BANK LOAN)...Ch. 17 - JOURNAL ENTRIES (ACCRUED INTEREST PAYABLE) At the...Ch. 17 - NOTES RECEIVABLE ENTRIES J. K. Pratt Co. had the...Ch. 17 - NOTES RECEIVABLE DISCOUNTING Marienau Suppliers...Ch. 17 - ACCRUED INTEREST RECEIVABLE The following is a...Ch. 17 - NOTES PAYABLE ENTRIES Milo Radio Shop had the...Ch. 17 - ACCRUED INTEREST PAYABLE The following is a list...Ch. 17 - TERM OF A NOTE Calculate total time in days for...Ch. 17 - CALCULATING INTEREST Using 360 days as the...Ch. 17 - DETERMINING DUE DATE Determine the due date for...Ch. 17 - JOURNAL ENTRIES (NOTE RECEIVED, RENEWED, AND...Ch. 17 - JOURNAL ENTRIES (NOTE RECEIVED, DISCOUNTED,...Ch. 17 - JOURNAL ENTRIES (ACCRUED INTEREST RECEIVABLE) At...Ch. 17 - JOURNAL ENTRIES (NOTE ISSUED, RENEWED, AND PAID)...Ch. 17 - JOURNAL ENTRIES (NOTE ISSUED FOR BANK LOAN)...Ch. 17 - JOURNAL ENTRIES (ACCRUED INTEREST PAYABLE) At the...Ch. 17 - NOTES RECEIVABLE ENTRIES M. L. DiMaurizio had the...Ch. 17 - NOTES RECEIVABLE DISCOUNTING Madison Graphics had...Ch. 17 - ACCRUED INTEREST RECEIVABLE The following is a...Ch. 17 - Prob. 13SPBCh. 17 - ACCRUED INTEREST PAYABLE The following is a list...Ch. 17 - Prob. 1MYWCh. 17 - Rochelle needed to borrow 3,000 for three months...Ch. 17 - Eddie Edwards and Phil Bell own and operate The...Ch. 17 - Prob. 1CP
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- The formula for computing interest on a note is: Principal of the notex Annual interest rate x Time expressed in fraction of year. True or False True Falsearrow_forwardInterest on a note payable can be calculated by multiplying the amount owed by the interest rate by the fraction of year that represents the time elapsed since borrowing. a. True b. Falsearrow_forwardANSWER ASAP THE SUBQUESTIONSarrow_forward
- Calculating Interest Using 360 days as the denominator, calculate interest for the following notes using the formula I = P × R × T. Round your answers to the nearest cent. Principal Rate Time Interest $4,200 6.00% 30 days $fill in the blank 1 1,000 7.50 60 $fill in the blank 2 4,400 8.00 120 $fill in the blank 3 950 6.80 95 $fill in the blank 4 1,250 7.25 102 $fill in the blank 5 2,400 7.00 90 $fill in the blank 6arrow_forwardDefine the following and provide respective examples;Simple interest Compound interestAnnual Percentage Rate – APR -Also, please provide a definition of a perpetuity and its formulaarrow_forwardThe principal P is borrowed at simple interest rate r for a period of time t. Find the loan's future value, A, or the total amount due at time t. P=$4000, r= 7.5%, t= 9 months The future value is $ (Simplify your answer. Type an integer or a decimal.)arrow_forward
- Determine the effective rate of interest of the following nominal rates. a. nominal rates (Compounded annually) b. nominal rates (Compounded quarterly) c. nominal rates (Compounded continuously) nominal rate = 0.14arrow_forwardDuring computation, you may round your integer data to two decimal places and your percentages and present value factors to four decimal places.arrow_forwardA saving account earns compound interest at an annual effective interest rate i. Given that d12,41 = 0.08, Find i1,51- %3Darrow_forward
- Part A: Calculate the interest on the following notes: Part B: Determine the maturity dates on the following notes: Check Figure 1. Interest, 66.92arrow_forwardAn interest rate obtained by dividing the nominal rate per year by the number of compounding periods in that year isa. A nominal interest rateb. An effective interest ratec. An effective interest rate only if the compounding period is monthlyd. Either (b) or (c)arrow_forwardThe following are a number of values taken from compoundinterest tables involving the same number of periodsand the same rate of interest. Indicate what each ofthese four values represents.(a) 6.71008. (c) .46319.(b) 2.15892. (d) 14.48656.arrow_forward
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