Gandhi sells books, magazines, music, and videos through retail stores and online. For expanding its business Gandhi has taken following long term loans andtheir maturities are listed below. These are the current debt outstanding as on 2020. Calculate the weighted average Interest rate for Gandhi?Debt Issues and Maturities:2022 Notes2023 Notes2028 Notes2032 Notes2041 Notes2049 NotesFace Value Amounts (in million $)Answer is in % use 2 decimals while writing answers and no % sign.$ 404$ 307$147$87$ 283$441Stated Interest Rates0.571%0.949%2.092%2.377%3.146%3.317%

Interest calculation= 2022 Notes : $ 404 * 0.571% = 2.30684 2023 Notes : $ 307 * 0.949% =…

Answered: Gandhi sells books, magazines, music,…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 11C

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Mohammed LLC is a growing consulting firm. The following transactions take place during the current year. A. On June 10, Mohammed borrows $270,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in four months from June 10, and annual interest rate of 5%. B. On July 9, Mohammed borrows an additional $100,000 with payment due in four months from July 9, and an annual interest rate of 12%. C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed.
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