The Tomac Swim Club arranged short-term financing of $13,100 .00 on July 5 with the Bank of Commerce and secured the loan with a demand note. The club repaid the loan by payments of $5900 on September 25, $3400 on November 11, and the balance on December 30. Interest, calculated on the daily balance and charged to the club's current account on the last day of each month, was at 10% per annum on July 5 The rate was changed to 9 5% effective September 1 and to 10 5% effective December 1. How much interest was paid on the loan?
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- Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at the end of the month for 12 months. The interest rate is 12% annually. If the monthly payments are $888.49, what is the journal entry to record the cash received on Jan. 1 and the first payment made on Jan. 31?Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.Pickles R Us is a pickle farm located in the Northeast. The following transactions take place: A. On November 6, Pickles borrows $820,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in six months from November 6, and annual interest rate of 3%. B. On December 12, Pickles borrows an additional $200,000 with payment due in three months from December 12, and an annual interest rate of 10%. C. Pickles pays its accounts in full on March 12, for the December 12 loan, and on May 6 for the November 6 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Pickles.
- On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.The Tomac Swim Club arranged short-term financing of $12,600.00 on July 9 with the Bank of Commerce and secured the loan with a demand note. The club repaid the loan by payments of $5500 on September 7, $3500 on November 5, and the balance on December 30. Interest, calculated on the daily balance and charged to the club's current account on the last day of each month, was at 9% per annum on July 9. The rate was changed to 10% effective September 1 and to 10.5% effective December 1. How much interest was paid on the loan? ..... The total interest paid was S| (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)Campus Flights takes out a bank loan in the amount of $210,000 on March 1. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 9 percent, recognized on December 31 A. Compute the interest recognized as of December 31 in year 1. $15,750 ✓✔ B. Compute the principal due in year 1.
- Campus Flights takes out a bank loan in the amount of $210,000 on March 1. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 9 percent, recognized on December 31. A. Compute the interest recognized as of December 31 in year 1. 15,750 ✔ 3. Compute the principal due in year 1.Barton Company has a line of credit with Sea View Bank. Barton can borrow up to $200,000 at any time over the course of Year 2. The following table shows the interest rate expressed as an annual percentage along with the amounts borrowed and repaid during the first three months of Year 2. 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. Month January February March Multiple Choice $1,500. Borrowed/ (Repaid) $25,000 (5,000) 20,000 Based on this information, the amount of interest expense Barton would recognize in February is $1,800. $150. Amount $125. Annual Interest Rate 6% 9% 9%The Tomac Swim Club arranged short-term financing of $12,500 on July 20 with the Bank of Commerce and secured the loan with a demand note. The club repaid the loan by payments of $5,000 on September 15, $4,000 on November 10, and the balance on December 30. Interest, calculated on the daily balance and charged to the club's current account on the last day of each month (the separate interest method), was at 9.5% per annum on July 20. The rate was changed to 8.5% effective September 1 and to 9% effective December 1. How much interest was paid on the loan? July 31 Calculate the interest charged on July 31. August 31 Calculate the interest charged on August 31. September 31 Calculate the interest accrued to September 14. Calculate the new balance on September 15. Calculate the interest accrued to September 30. Calculate the interest charged on September 30. October 31 Calculate the interest charged on October 31. November 30 Calculate the interest accrued to November 9. Calculate the new…
- Boyd Company has a line of credit with State Bank. Boyd can borrow up to $500,000 at any time over the course of the Year 1 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during Year 1. Boyd agreed to pay interest at an annual rate equal to 1 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, Boyd pays 6 percent (5 percent +1 percent) annual interest on $70,000 for the month of January. Amount Borrowed or (Repaid) $ 70,000 50,000 (42,000) No change (30,000) (20,000) Boyd earned $35,000 of cash revenue during Year 1. Month January February March April through October November December Income Statement Required Prepare an income statement, balance sheet, and statement of cash flows for Year 1. Service revenue Expenses…Campus Flights takes out a bank loan in the amount of $210,000 on March 1. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 12 percent, recognized on December 31. A. Compute the interest recognized as of December 31 in year 1. B. Compute the principal due in year 1. - రదాక రుOn June 30, 2021, the High Five Surfboard Company had outstanding accounts receivable of $600,000. On July 1, 2021, the company borrowed $450,000 from the Equitable Finance Corporation and signed a promissory note. Interest at 10% is payable monthly. The company assigned specific receivables totaling $600,000 as collateral for the loan. Equitable Finance charges a finance fee equal to 1.8% of the accounts receivable assigned.Required:Prepare the journal entry to record the borrowing on the books of High Five Surfboard.