1. XYZ Corporation borrowed $100,000 for six months from the bank. The rate is prime plus 2 percent. The prime rate was 8.5 percent at the beginning of the loan and changed to 9 percent after two months. This was the only change. How much interest must XYZ corporation pay? a. $2,476 b. $5,417 c. $18,212 d. $21,500
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1. XYZ Corporation borrowed $100,000 for six months from the bank. The rate is prime plus 2 percent.
The prime rate was 8.5 percent at the beginning of the loan and changed to 9 percent after two months.
This was the only change. How much interest must XYZ corporation pay?
a. $2,476 b. $5,417 c. $18,212 d. $21,500
2. On September 1, Hydra purchased $13,300 of inventory items on credit with the terms 1/15, net 30,
FOB destination. Freight charges were $280. Payment for the purchase was made on September 18.
Assuming Hydra uses the perpetual inventory system and the net method of accounting for purchase
discounts, what amount is recorded as inventory from this purchase?
a. $13,167 b. $13,447 c. $13,580 d. $13,300.
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