abardeen corporation borrowed 58,000 from the bank on october 1, year 1. the note had a 4 percent annual rate of interest and matured on march 31, year 2.   interest and principal were paid in cash on the maturity date.d. what total amount of cash was paid to the bank on march 31, year 2, for principle and interest?e. what amount of interest expense was reported on the year 2 income statement?

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Asked Apr 10, 2019
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abardeen corporation borrowed 58,000 from the bank on october 1, year 1. the note had a 4 percent annual rate of interest and matured on march 31, year 2.   interest and principal were paid in cash on the maturity date.

d. what total amount of cash was paid to the bank on march 31, year 2, for principle and interest?

e. what amount of interest expense was reported on the year 2 income statement?

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Expert Answer

Step 1

d. Compute the total amount of cash (principal and interest) that was paid to bank on March 31, Year 2:

Given, Abardeen Corporation borrowed $58,000 (Principal) from bank on October 1, Year 1. The note had a 4% annual interest rate. The note would be matured on March 31, Year 2.

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Step 2

Now, compute the total amount of cash (principal and interest):

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Step 3

Therefore, the total amount of cash (principal and interest) that has paid to the bank on March 31,...

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