Campus Flights takes out a bank loan in the amount of $200,500 on March 1, 2019. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 8%, recognized on December 31, the fiscal year-end date.PLEASE NOTE: Round answers to the nearest whole dollar if needed. All whole dollar amounts will have "$" and commas, where needed (i.e. $12,345).Compute the interest recognized for the first payment date as of December 31, 2019. __________Compute the interest recognized for the year 2020 as of the first payment date. ___________Compute the principal due on the first payment date, March 1, 2020. __________Compute the interest recognized for the second payment date as of December 31, 2020. __________Compute the total interest for the year 2020. __________IMPORTANT: Please count your months carefully as the note's "year" crosses between two fiscal years.

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Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 1EA: Campus Flights takes out a bank loan in the amount of $200,500 on March 1. The terms of the loan...

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Campus Flights takes out a bank loan in the amount of $200,500 on March 1, 2019. 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 8%, recognized on December 31, the fiscal year-end date.

PLEASE NOTE: Round answers to the nearest whole dollar if needed. All whole dollar amounts will have "$" and commas, where needed (i.e. $12,345).

Compute the interest recognized for the first payment date as of December 31, 2019. __________
Compute the interest recognized for the year 2020 as of the first payment date. ___________
Compute the principal due on the first payment date, March 1, 2020. __________
Compute the interest recognized for the second payment date as of December 31, 2020. __________
Compute the total interest for the year 2020. __________

IMPORTANT: Please count your months carefully as the note's "year" crosses between two fiscal years.

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