Max Wholesaler borrowed $2,000 on a 10%, 120-day note. After 45 days, Max paid $700 on the note. Thirty days later, Max paid an additional $630. What is the final balance due? use th U.S rule to determine the total interest and ending balance due. use ordinary interest.

Q: Kylah Enterprises signs a 3-month, noninterest-bearing note with a stated rate of 13.5% and a…

A: Given, Principal =$215,000 Interest =13.5%   Computation of interest =$215,000 * 13.5% *3/12…

Q: The following note transactions occurred during the year for Towell Company: On Nov. 25, Towell…

A: Interest is an expense which is to be paid to the lender or creditor for making late payment for the…

Q: On May 1, Year 1, Benz's Sandwich Shop loaned $10,000 to Mark Henry for one year at 6 percent…

A: Workings. a) Given, Loan Amount=$10000,Interest Rate=6%,Time=8 months(i.e. from May to December)…

Q: Mike Co. borrowed $90,000 on July 1 of the current year by signing a 90-day, 6%, interest-bearing…

A: The financial transactions are initially recorded in the form of journal entry.

Q: Central Auto Parts borrowed $450,000 at 9% interest on July 13 for 120 days. (a) If the bank uses…

A: When it is required to compute the interest due for a fraction of one year, it is often the practice…

Q: On January 26, Bella Co. borrowed cash from Conrad Bank by issuing a 120-day note with a face amount…

A: A promissory note can be described as a legal document that documents a loan between the lender and…

Q: On May 1, Year 1, Benz's Sandwich Shop loaned $12,000 to Mark Henry for one year at 6 percent…

A: The interest amount is obtained when the loan amount is multiplied by the interest rate. Interest…

Q: The following note transactions occurred during the year for Zuber Company: On November 25, Zuber…

A: Counting of days of accrual Porter's note From November 25 to December 31st = 5 +31 = 36 days  Bank…

Q: Martinez Sporting Goods borrows $4,500, at 5% interest, for 120 days. Use the exact interest method…

A: Interest amount is the fixed amount that the lender will charge for lending some amount for certain…

Q: On March 1, Minnerly Motors obtains a business loan from a local bank. Theloan is a $25,000…

A: The formula to compute interest charge as follows:

Q: On October 1, Bandor Company sold land (that cost $30,000) on credit for $35,000. The buyer issued…

A: Date Accounts title and explanation Debit ($) Credit ($) 1-Oct Note receivable $35,000…

Q: Comet Lee borrowed $16,000 on a 6%, 90-day note. After 20 days, Comet paid $2,000 on the note. On…

A: I = P x R  x T   P = Principal amount R = Rate = 6% T = Period

Q: Al-Ahmadi Co. signed a three-month, 9%, note payable in the amount of OMR75,000 on Dec 1.  The note…

A: Formula: Interest amount = Principal amount x interest rate. Multiplying interest rate with…

Q: Martinez Co. borrowed $69,589 on March 1 of the current year by signing a 60-day, 6%,…

A: Formula: Interest amount = Notes amount x Interest rate x Time period

Q: On May 15, Franklin Co. borrowed cash from Dakota Bank by issuing a 90-day note with a face amount…

A: (a) The issued note cannot be discounted. It is issued at face value. Therefore, the proceeds of the…

Q: Determine the following: The rate of simple interest. The corresponding discount rate.

A: Simple Interest: It is the interest amount calculated by charging the interest rate on the…

Q: COMPUTE TRINA'S INTEREST INCOME UNDER THE FOLLOWING SITUATION: The note is non-interest bearing, but…

A: Non-interest bearing promissory note is the note which itself denotes in the name that the holder of…

Q: On March 15, 2021, Julio borrowed $910 from Sheridan Credit Union at 7.19% per annum calculated in…

A: A line of credit seems to be a sort of loan made to meet a short-term personal or commercial cash…

Q: On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount…

A: a. In this case, the note is not discounted. Hence, the proceeds amount of the note is equal to the…

Q: On May 1, Year 1, Benz's Sandwich Shop loaned $12,000 to Mark Henry for one year at 7 percent…

A: a. Interest income = Loan amount x interest rate x no. of months/12 = $12000*7%*8/12 = $560

Q: On May 15, Holt's Clothiers borrowed some money on a 4- month note to provide cash during the slow…

A: The detailed assumptions made by accountants while compiling a company's income statement, balance…

Q: Martinez Co. borrowed $62,310 on March 1 of the current year by signing a 60-day, 8%,…

A: The journal recorded at the time payment is : Interest expense A/c    Dr         831          -…

Q: On September 1, Purifier Company borrowed $12,000 on a 6-month, 4%, short-term note payable. How…

A: Interest will be paid on March 1 = Amount borrowed x rate of interest x no. of months / 12 months

Q: The Beta Company made a sale for $340,000 on credit. It accepted a note receivable from the…

A: Solution-  = $340000 * 4%  = 13600 Interest is calculated by applying Interest rate to the principle…

Q: Martinez Co. borrowed $69,589 on March 1 of the current year by signing a 60-day, 6%,…

A: Introduction: Journals: Each and every business transactions are to be recorded in journals. All the…

Q: On May 15, Maynard Co. borrowed cash from Texas Bank by issuing a 60-day note with a face amount of…

A:

Q: Martinez Co. borrowed $50,000 on March 1 of the current year by signing a 60-day, 9%,…

A: The entry to record the payment should include Debit to Interest Expenses for $375.

Q: On October 1, Ramos Co. signed a $90,000, 60-day discounted note at the bank. The discount rate was…

A: Discount on notes payable = Amount of note payable x discount rate = $90000 x 6% = $5400

Q: May 15, Holt's Clothiers borrowed some money on a 4-month note to provide cash during the slow…

A: Journal entry is the process of documenting commercial transactions for the first time in the books…

Q: Slack Inc. borrowed $320,000 on April 1. The note requires interest at 12% and principal to be paid…

A: Accrual basis: Accrual basis is a method of accounting. In this method recording of revenues are…

Q: At the beginning of a month, a customer owes a credit card company $8480. In the middle of the…

A: A credit card allows the holder to spend for their needs and allows them to pay at a later date…

Q: Jack Abrams borrowed $8,000 for nine months at an interest rate of 7% (simple interest). The bank…

A: Actual interest rate is computed below:

Q: On October 1, Ramos Co. signed a $90,000, 60-day discounted note at the bank.  The discount rate was…

A: Part-A Amount which will be Discounted by Bank  = $ 90,000 x 6% x 60360…

Q: Max Wholesaler borrowed $3,000 on a 8%, 120-day note. After 45 days, Max paid $1,050 on the note.…

A: Under U.S rule interest is calculated only on the unpaid principal balance and no compounding of…

Q: An automotive dealer borrowed $7100.00 from the Bank of Montreal on a demand note on May 15.…

A: In case of interest calculated on a daily balance, you will have to make a proper track of every…

Q: Max Wholesaler borrowed $7,500 on a 8%, 120-day note. After 45 days, Max paid $2,625 on the note.…

A: Intoduction:- A borrower or deposit-taking financial institution pays interest to a lender or…

Q: On November 16, Bell borrowed $10,000 from Graham and gave a 90-day, 12% note. On December 31, the…

A: As of the end of accounting period, the company that has lent money needs to record interest on a…

Q: Cooper Stereos has a $22,500 line of credit which charges an annual percentage rate of prime rate…

A: The calculation is:

Q: On May 12, Scott Rinse accepted an $11,000, 14%, 90-day note for a time extension of a bill for…

A: Given data, Principal amount (P) = $11,000 Rate (R) = 14% or 0.14 Time (T) = 90 days / 360 days Bank…

Q: On May 12, Scott Rinse accepted an $15,500, 14%, 90-day note for a time extension of a bill for…

A: The question is based on the concept of Financial Management.

Q: Martinez Co. borrowed $55,707 on March 1 of the current year by signing a 60-day, 12%,…

A: Interest expense is calculated by simple interest formula Interest = amount borrowed * interest rate…

Q: Valley Designs issued a 90-day, 9% note for $96,000, dated April 19, to Bork Furniture Company on…

A: Notes receivable are made by Debtors as a promissory note that they will make the payment on due…

Q: JAB Consulting received a promissory note of $13,500 at 9% simple interest for 15 months from one of…

A: A promissory note refers to a legal instrument in which the promise is made in writing that the…

Q: a company borrowed 12,000 by signing a 120 day promissory note at 15% the total to be paid at…

A: Formula: Interest amount = Principal amount x Interest rate x Time period.

Q: On December 1, Victoria Company signed a 90-day, 6% note payable, with a face value of $15,000. What…

A: Interest accrued = Note payable x Interest rate x 30/360 = $15000 x 6% x 1/12 = $75