On May 15, Wild Quest Clothiers borrowed some money on a 4-month note to provide cash during the slow season of the year. The interest rate on the note was 8%. At the time the note was due, the amount of interest owed was $480. a.Determine the amount borrowed by Wild Quest b.Independent from your answer in part (a),assume the amount borrowed was $18,500. What was the interest rate if the amount of interest owed was $555? c.Prepare the entry for the initial borrowing and the repayment for the facts in part (a).

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
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Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 1PB: Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at...
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On May 15, Wild Quest Clothiers borrowed some money on a 4-month note to provide cash during the slow season of the year. The interest rate on the note was 8%. At the time the note was due, the amount of interest owed was $480.

a.Determine the amount borrowed by Wild Quest

b.Independent from your answer in part (a),assume the amount borrowed was $18,500. What was the interest rate if the amount of interest owed was $555?

c.Prepare the entry for the initial borrowing and the repayment for the facts in part (a).

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