The Schitt Company borrowed $900 on January 1, 2020 at an annual rate of interest of eight percent. The loan has a three-year term and the company will not make any payments until the end of the term. What amount of interest expense will the company record on December 31, 2022? Round your final answer to the nearest whole dollar and enter as a positive number.
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- Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)The McAllister Company borrowed $40,000 from a bank on January 1, 2021 at an interest rate of 4 percent; the loan will be repaid in full at the end of the two-year term. What amount of interest expense will the company record in its financial statements for the year 2022? As needed, round your final answer (but not intermediate steps) to the nearest whole dollar and enter as a positive number.
- On August 1, 2021, Stucko Company borrowed $21,000 on an 8-month, 3%, short-term note payable. Which account will be credited on April 1, 2022, and for what amount? Stucko Company has a calendar year-end.On January 1, 2019, Zoom Bank provided a loan of P4,000,000 to D Company. Under the loan agreement, the effective interest rate is 10% and that D Company is to pay the annual interest every December 31. The principal amount of the loan is due on December 31, 2023.On December 31, 2019, Zoom Bank needs to measure the 12-month expected credit loss for the loan. Zoom Bank determined that the probability of the loan being in default over the next 12 months is 1% and that 20% of the gross carrying amount will be lost over the term of the loan; i.e., Loan Given Default (LGD) is 20% and Probability of Collection is 80%. The 12-month expected credit loss allowance has been determined to be P18,140.On December 31, 2020, Zoom Bank has determined that there is significant increase in the credit risk of the loan receivable. The probability of the loan being in default over the life of the loan is 10% and the LGD is 25% of the gross carrying amount. The present value of 1 at 10% for three periods is…Patrick Trash Haulers borrowed 42,000 on June 1, 2020. The loan had an interest rate of 5%. The principal is to be repaid on April 30, 2021. They made the appropriate adjusting journal entries on December 31, 2021, the last day of their fiscal year. In recording the payment of the note plus accrued interest at maturity on April 30, 2021, they would: O Debit Interest Expense $700. Debit Interest Expense $1,225. O Credit Cash $43,225. O Debit Interest Expense $1,925.
- Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of $58,700 in its bank account. The note has a 3-year term, compounds 4 percent interest annually, and requires an annual installment payment on December 31. Cucina Corporation has a December 31 year-end and adjusts its accounts only at year-end. Required: 1. Use an online application, such as the loan calculator with annual payments at mycalculators.com, to complete the amortization schedule. 2. Prepare the journal entries on (a) January 1, 2021, and December 31 of (b) 2021, (c) 2022, and (d) 2023. 3. If Cucina Corporation's year-end were March 31, rather than December 31, prepare the adjusting journal entry it would make for this note on March 31, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Use an online application, such as the loan calculator with annual payments at mycalculators.com, to complete the amortization schedule. (Do…Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of $54,800 in its bank account. The note has a 3-year term, compounds 4 percent interest annually, and requires an annual installment payment on December 31. Cucina Corporation has a December 31 year-end and adjusts its accounts only at year-end. Required: 1. Use an online application, such as the loan calculator with annual payments at mycalculators.com, to complete the amortization schedule. 2. Prepare the journal entries on (a) January 1, 2021, and December 31 of (b) 2021, (c) 2022, and (d) 2023. 3. If Cucina Corporation's year-end were March 31, rather than December 31, prepare the adjusting journal entry it would make for this note on March 31, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Use an online application, such as the loan calculator with annual payments at mycalculators.com, to complete the amortization schedule. (Do…A company borrowed P100,000 on September 30, 2019 by signing a six-month note that specifies interest at an annual percentage rate of 12%. No interest or principal payment is due until the note matures on March 31, 2020. 6. Prepare the initial entries to record the loan. 7. What date should be used to record the December adjusting entry? 8. What are the accounts involved in the adjusting entries? 9. Prepare the adjusting entries.
- Analyze and review the following items and determine the appropriate journal entry. Bank Loan Interest on the bank loan is 2.50% annually. Interest has to be paid on January 7, 2021; for 2020. The entire amount of the loan ($4,000,000) was outstanding during the entire year. No payments were made during the year. Of the bank loan, $1,000,000 is due June 30, 2021 with the remainder due June 30, 2026. Notes Payable This is a short-term note. The company borrowed money from JRT Investments on October 31, 2020 for 3 months. The principal, along with interest is to be repaid on January 31, 2021. The interest rate is 1.8%.Alaska Inc. borrowed $16,000 by signing a one-year note payable on November 1, 2020. The note bears interest at 10% and interest is payable upon maturity of the note. a. Record this financing transaction on November 1, 2020. b. Record the year-end adjusting entry required on December 31, 2020. Hint: Prorate the annual interest of 10% for two months. c. Record the entry to repay the note on November 1, 2021.7) On December 1, 2022, Olympia Hot Yoga issued a note payable to Columbia Bank for $45,000 with an annual interest rate of 6% and a term of six months (due May 31, 2023). What is the amount of interest expense recognized by Olympia Hot Yoga in 2022? What is the amount of interest expense recognized by Olympia Hot Yoga in 2023? What is the total amount Olympia Hot Yoga will pay to Columbia Bank on the maturity date?