On October 1, Dalton Corp. borrows $100,000 fromNational Bank, signing a six-month note payable for thatamount, plus interest to be computed at a rate of 9 percentper annum. Indicate all correct answers.a. Dalton’s liability at October 1 is only $100,000.b. The maturity value of this note is $104,500.c. At December 31, Dalton will have a liability foraccrued interest payable in the amount of $4,500.d. Dalton’s total liability for this loan at November 30is $101,500.
On October 1, Dalton Corp. borrows $100,000 fromNational Bank, signing a six-month note payable for thatamount, plus interest to be computed at a rate of 9 percentper annum. Indicate all correct answers.a. Dalton’s liability at October 1 is only $100,000.b. The maturity value of this note is $104,500.c. At December 31, Dalton will have a liability foraccrued interest payable in the amount of $4,500.d. Dalton’s total liability for this loan at November 30is $101,500.
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
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Question
On October 1, Dalton Corp. borrows $100,000 from
National Bank, signing a six-month note payable for that
amount, plus interest to be computed at a rate of 9 percent
per annum. Indicate all correct answers.
a. Dalton’s liability at October 1 is only $100,000.
b. The maturity value of this note is $104,500.
c. At December 31, Dalton will have a liability for
accrued interest payable in the amount of $4,500.
d. Dalton’s total liability for this loan at November 30
is $101,500.
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