Customer Bank loaned The Teacup Shoppe money at 6% interest for 90 days. If the interest was $300 using the ordinary interest method, the principal amount borrowed was $2,000.O TrueO False

Interest rate id 6% Time period is 90days Total interest was $300 To Find: Principal amount…

Answered: Customer Bank loaned The Teacup Shoppe…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 1CE

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Sunlight Growers borrows $250,000 from a bank at a 4% annual interest rate. The loan is due in three months. At the end of the three months, the company pays the amount due in full. How much did the company remit to the bank? A. $250,000 B. $10,000 C. $252,500 D. $2,500
Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.
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Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
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Customer Bank loaned The Teacup Shoppe money at 6% interest for 90 days. If the interest was $300 using the ordinary interest method, the principal amount borrowed was $2,000. O True O False