Connect 2 Semester Access Card for Financial and Managerial Accounting
6th Edition
ISBN: 9780077633059
Author: John Wild, Ken Shaw
Publisher: McGraw-Hill Education
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Question
Chapter B, Problem 7E
To determine
Annual Interest Rate:
The annual interest rate refers to the rate of interest at which the annual simple interest is calculated. It is the rate of interest that is paid on an investment or loan or bonds after to take into consideration of compounding over a period of time.
Discount Factor:
Discount factor is a financial term which is used to calculate the present value of money. The discount factor is a value which is multiplied with any amount and results its present value.
To identify: The annual interest rate of investment.
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Quick answer of this accounting questions
Swifty Supply Co. has the following transactions related to notes receivable during the last 2 months of 2027. The company does not make entries to accrue interest except at December 31.
Nov. 1
Loaned $30,000 cash to Manny Lopez on a 12 month, 10% note.
Dec. 11
Sold goods to Ralph Kremer, Inc., receiving a $85,500, 90-day, 8% note.
16
Received a $87,840, 180 day. 10% note to settle an open account from Joe Fernetti.
31
Accrued interest revenue on all notes receivable.
(a)
Journalize the transactions for Swifty Supply Co. (Ignore entries for cost of goods sold.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Use 360 days for cal
in the order presented in the problem. List all debit entries before credit entries.)
Date
Account Titles and Explanation
Debit
Credit
Chapter B Solutions
Connect 2 Semester Access Card for Financial and Managerial Accounting
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