A business borrows $1,000, giving a note that requires repayment of the amount borrowed in two payments of $600 each, one at the end of each of the next two six-month periods. Calculate the total interest on the note. What is the principal amount of the note?

Q: What is the entry: someone lend money to my company $10,000 cash in exchange for a two-year, 6% note…

A: Cash: Cash is the money that is readily available in the form of currency. Since cash can be easily…

Q: Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual…

A: Journal:Journal is the method of recording monetary business transactions in chronological order. It…

Q: what is the entry to record the receipt of the funds from the loan?    what is the entry to accrue…

A:

Q: Sylvestor Systems borrows $185,000 cash on May 15 by signing a 150-day, 7%, $185,000 note. 1. On…

A: Journal: Recording of a business transactions in a chronological order.

Q: Bill deposits $100 into a bank account. His account is credited at a nominal discount rate of 4%…

A: Interest credited to the account of Bill and Cynthia at the end of the year will be $4 and $16…

Q: A borrower has two alternatives for a loan: (1) issue a $360,000, 75-day, 6% note or (2) issue a…

A: Notes payable is a promise to pay certain amount by the buyer to the seller on a date and interest…

Q: A business issued a 60-day note for $87,000 to a bank. The note was discounted at 7%. Journalize the…

A: Businesses may issue short-term discount notes in consideration of goods, services, or cash.These…

Q: 1. A bank is offering to sell certificates of deposit valued at $ 5,000.00. At the end of 3 years,…

A: Solution:- Given, A Bank Deposited Value = $5,000 At the end of 3 years = $5,310 Interest for 3…

Q: Prepare the following calculations. principle on a note is $ 4,000, interest rate is 5%, time is 2…

A: 1. Interest = Principle x Interest rate x Time in Years = $4000 x 5% x 2 = $400 2. Interest =…

Q: Shady Tree Company issued a note receivable to a customer. The face value of the note was $12,000 at…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

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

A: Number of installments = 5Annual amount = $16,500Interest rate = 7%To find: The amount borrowed by…

Q: On January 1, $38,000 cash is borrowed from a bank in return for a 12% installment note with 36…

A: Given information Notes payable = $38,000 Monthly payment = $1262 Duration = 36 months Interest =…

Q: Wayne signed a $10,000 note at Lynn Bank that charges a 7% discount rate. Use ordinary interest. If…

A: 7% discount rate is for 150 days.  1. To calculate proceeds, deduct interest from signed amount.  2.…

Q: Martinez Sporting Goods borrows $4,500, at 5% interest, for 120 days. Use the exact interest method…

A: Interest amount is the fixed amount that the lender will charge for lending some amount for certain…

Q: Roni Lockard signed a $26,500 simple discount promissory note at a certain bank. The discount rate…

A: Discount note: Selling the note with discount value which means less than the face value.

Q: A loan company advertises that $100 borrowed for one year may be repaid by 12 monthly installments…

A: Effective annual interest is the amount which is expressed in terms of percentage paid annually to…

Q: On June 15, Julio borrowed $950.00 from Sheridan Credit Union at 6.1% per annum calculated on the…

A: Repayment  schedule is a detailed plan that specifies the dates and amounts of loan payments. It…

Q: Required: (a) Calculate the present value of the note (PV).

A: The present value of the note is as follows. =Amount repaid(1+interest rate)=$10000(1+12%)= $ 8,929

Q: You borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal…

A: The Present Value of Ordinary Annuity refers to the concept which gives out the discounted or…

Q: Dan Dayle started a business by issuing an $92,000 face value note to First State Bank on January 1,…

A: Formula:Interest expense = Principal amount x Interest rate x Time period

Q: 13) A customer with unpaid balance for merchandise of $210.00 from the previous month has been…

A: Finance charge as per unpaid balance method is computed by multiplying the unpaid balance with the…

Q: Paul and Sandy Moede signed an $8000 note at Citizen's Bank. Citizen's charges a 6.50% discount…

A: Computation of effective rate of interest:Hence, the effective rate of interest is 6.87%.

Q: Use the ordinary interest method to compute the time (in days) for the loan. Round your answer up to…

A: Ordinary interest is a method of interest calculation where the principal amount remains the same…

Q: Dan Dayle started a business by issuing an $98,000 face value note to First State Bank on January 1,…

A: a)  Interest Expense = Principal Amount x Interest Rate = $98,000 x 8% = $7,840a)  Principal…

Q: Use the actuarial method to find the payoff amount for the loan paid in full before its due date.…

A: The method which is derived for calculating the amount of allocation between the principal amount…

Q: I want to borrow $700 for ten days from a payday loan store. Here are the terms for the payday loan:…

A: Pay Day loan: A payday loan is a small personal cash loan at a very high interest rate, secured by…

Q: Assume the following information for a car note: Original loan amount = $23,500 Annual interest rate…

A: Calculation of Principal Balance:The principal balance on the loan after six months is…

Q: How can we calculate the total annual interest payment for a credit card debt of $ 1,000?

A: We should pay the credit card bill by the end of credit free period to avoid interest charges upon…

Q: The company has a mortgage note payable for $1,500,000 that comes due in year 3. this note is paid…

A: Lets understand the basics. Journal entry is required to make to record event and transaction that…

Q: JAB Consulting received a promissory note of $18,500 at 8% simple interest for 15 months from one of…

A: First we need to calculate maturity value of discounted note.The maturity value represents the total…

Q: Akbar Associates issued 120-day note for $50,000 to a creditor on a account. The note was discounted…

A: Cash Proceeds from Notes Receivable = Present Value of Notes

Q: A loan of $2700 collecting simple interest at a 7.9% annual rate was repaid with a check for…

A: Solution : Given Amount of loan $2700 Simple interest rate 7.9% Amount repaid…

Q: Gene McDonald's bank granted him a single-payment loan of $5,000 for 90 days at 9% ordinary…

A: A fundamental method of calculating interest in finance is called simple interest. It is calculated…

Q: A business issued a 45-day, 6% note for $210,000 to a creditor. Principal and interest are payable…

A: Notes are short term financial intrument with a fixed maturity period and usually short term…

Q: A finance company uses the discount method of calculating interest. The loan principal is $5,000,…

A: Future Value = Present Value * (1+r)^n