On may 1 Cleveland livingston opened a savings account that paid 3.5 percent exact interest at fulton savings bank with a deposit of 5,000. Ten days later he deposited 2,000. Fourteen days later he deposited 8,000. No other deposits or withdrawals were made. Six days later the bank calculated the daily interest. 5. On February 1, the balance in your account is $516.81. On July 1, you deposit$310.90. Your bank pays 64 percent interest:a. How much interest have you earned on July 1?S13.43b. What is your balance, including your deposit, on July 1?827.71879.44c. How much interest have you earned on November 1?d. What is your balance on November 1?Some banks calculate the interest on a daily basis. The daily interest is added to theaccount at the end of the month.6. On May 1, Cleveland Livingston opened a savings account that paid 3.5 percentexact interest at Fulton Savings Bank with a deposit of $5,000. Ten days later hedeposited $2,000. Fourteen days later he deposited $8,000. No other deposits orwithdrawals were made. Six days later the bank calculated the daily interest.a. How much simple interest did his money earn?b. How much was in the account at the end of the 30 days?with Business Applications • Section 5-4 35

Deposit 1 (D1) = $5000 on day 0 Deposit 2 (D2) = $2000 at day 10 Deposit 3 (D3) = $8000 at day 24 We…

6. On May 1, Cleveland Livingston opened a savings account that paid 3.5 percent exact interest at Fulton Savings Bank with a deposit of $5,000. Ten days later he deposited $2,000. Fourteen days later he deposited $8,000. No other deposits or withdrawals were made. Six days later the bank calculated the daily interest. a. How much simple interest did his money earn? b. How much was in the account at the end of the 30 days?

6. On May 1, Cleveland Livingston opened a savings account that paid 3.5 percent exact interest at Fulton Savings Bank with a deposit of $5,000. Ten days later he deposited $2,000. Fourteen days later he deposited $8,000. No other deposits or withdrawals were made. Six days later the bank calculated the daily interest. a. How much simple interest did his money earn? b. How much was in the account at the end of the 30 days?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?
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On May 1, Year 1, Benz’s Sandwich Shop loaned $14,000 to Mark Henry for one year at 8 percent interest. Requireda. What is Benz’s interest income for Year 1?b. What is Benz’s total amount of receivables at December 31, Year 1?c. How will the loan and interest be reported on Benz’s Year 1 statement of cash flows?d. What is Benz’s interest income for Year 2?e. What is the total amount of cash that Benz’s will collect in Year 2 from Mark Henry?f. How will the loan and interest be reported on Benz’s Year 2 statement of cash flows?g. What is the total amount of interest that Benz’s earned on the loan to Mark Henry?