FINANCIAL ACCOUNT.(LL)-W/ACCESS>CUSTOM<
9th Edition
ISBN: 9781260080346
Author: Libby
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 9, Problem 9MCQ
SmallFish Company borrowed $100,000 at 8% interest for three months. How much interest does the company owe at the end of three months?
- a. $8,000
- b. $2,000
- c. $800
- d. $200
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
XYZ Company borrowed $100,000 at a 9% interest rate
on May 1, 20X1 for one year with interest and principal
due on April 30, 20X2. How much cash will be paid for
interest on December 31, 20X1?
O $6,000
$0
O $9,000
O $3,000
ABC Company borrowed $100,000 on January 1, 20X1.
Interest is 5% payable each December 31. They are
borrowing the money for three years. On December 31
20X3, the principal and the last interest payment will be
due. What is their interest expense on December 31,
20X3?
O $1667
O $5000
O $15,000
O $115,000
ABC Company borrowed $100,000 on January 1, 20X1. Interest is 6% payable each December 31. They are borrowing the money for three years. On December 31 20X3, the principal and the last interest payment will be due. What is their interest expense on December 31, 20X3?
Group of answer choices
$106,000
$6,000
$118,000
$18,000
Chapter 9 Solutions
FINANCIAL ACCOUNT.(LL)-W/ACCESS>CUSTOM<
Ch. 9 - Prob. 1QCh. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - Prob. 4QCh. 9 - Prob. 5QCh. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Define deferred revenue. Why is it a liability?Ch. 9 - Prob. 9QCh. 9 - Define working capital. How is working capital...
Ch. 9 - Prob. 11QCh. 9 - When a company signs a capital lease, does it...Ch. 9 - Prob. 13QCh. 9 - Define annuity.Ch. 9 - Prob. 15QCh. 9 - Prob. 16QCh. 9 - What is the present value factor for an annuity of...Ch. 9 - The university golf team needs to buy a car to...Ch. 9 - Which of the following best describes accrued...Ch. 9 - Prob. 4MCQCh. 9 - A company is facing a lawsuit from a customer. It...Ch. 9 - Which of the following transactions would usually...Ch. 9 - How is working capital calculated? a. Current...Ch. 9 - Prob. 8MCQCh. 9 - SmallFish Company borrowed 100,000 at 8% interest...Ch. 9 - Prob. 10MCQCh. 9 - Prob. 9.1MECh. 9 - Computing and Interpreting Accounts Payable...Ch. 9 - Prob. 9.3MECh. 9 - Prob. 9.4MECh. 9 - Prob. 9.5MECh. 9 - Prob. 9.6MECh. 9 - Prob. 9.7MECh. 9 - Prob. 9.8MECh. 9 - Prob. 9.9MECh. 9 - Computing the Present Value of an Annuity What is...Ch. 9 - Prob. 9.11MECh. 9 - Prob. 9.12MECh. 9 - Prob. 9.1ECh. 9 - Recording Payroll Costs Paul Company completed the...Ch. 9 - Prob. 9.3ECh. 9 - Recording a Note Payable through Its Time to...Ch. 9 - Prob. 9.5ECh. 9 - Prob. 9.6ECh. 9 - Prob. 9.7ECh. 9 - Prob. 9.8ECh. 9 - Reporting Contingent Liabilities Jones Soda is a...Ch. 9 - Prob. 9.10ECh. 9 - Prob. 9.11ECh. 9 - Prob. 9.12ECh. 9 - Computing Four Present Value Problems On January 1...Ch. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17ECh. 9 - Prob. 9.18ECh. 9 - Prob. 9.19ECh. 9 - Prob. 9.20ECh. 9 - Prob. 9.21ECh. 9 - Prob. 9.22ECh. 9 - Prob. 9.23ECh. 9 - Prob. 9.24ECh. 9 - Recording and Reporting Current Liabilities LO9-1...Ch. 9 - Prob. 9.2PCh. 9 - Prob. 9.3PCh. 9 - Recording and Reporting Accrued Liabilities and...Ch. 9 - Prob. 9.5PCh. 9 - Prob. 9.6PCh. 9 - Prob. 9.7PCh. 9 - Prob. 9.8PCh. 9 - Prob. 9.9PCh. 9 - Prob. 9.10PCh. 9 - Prob. 9.11PCh. 9 - Prob. 9.12PCh. 9 - Prob. 9.13PCh. 9 - Prob. 9.14PCh. 9 - ALTERNATE PROBLEMS AP9-1 Recording and Reporting...Ch. 9 - Prob. 9.2APCh. 9 - Prob. 9.3APCh. 9 - Prob. 9.4APCh. 9 - Prob. 9.5APCh. 9 - Prob. 9.6APCh. 9 - Prob. 9.7APCh. 9 - Prob. 9.8APCh. 9 - Prob. 9.1CONCh. 9 - Annual Report Cases Finding Financial Information...Ch. 9 - Finding Financial Information Refer to the...Ch. 9 - Prob. 9.3CPCh. 9 - Prob. 9.4CPCh. 9 - Prob. 9.5CP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- On January 1, New York Company borrowed $180,000 to purchase machinery and agreed to pay 5% interest for 6 years on an installment note. Each note payment is due on the last day of the year. What is the total interest expense over the life of the loan? A. $32,779 B. $54,000 C. $33,657 D. $35,463arrow_forwardPeachtree Company borrows $40,000 from the local bank at 8% interest. The term of the note is 5 years, and the annual payments remain constant at $10,018. Determine the interest expense Peachtree Company should record in the second year. O a. $2,655 O b. $6,818 OC. $3,200 O d. $10,018arrow_forwardBilly Thornton borrowed $250,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month. The bank uses a 360-day year. How much interest would Billy have to pay in a 30-day month? Select the correct answer. a. $1,507.82 b. $1,513.02 c. $1,509.12 d. $1,511.72 e. $1,510.42arrow_forward
- ABC Company borrowed $100,000 at a 9% interest rate on May 1, 20X1 for one year with interest and principal due on April 30, 20X2. How much is ABC's interest expense for the year ended December 31, 20X1? O $3,000 O $6,000 O $100,000 O $9,000arrow_forwardABC Company borrowed $100,000 at a 6% interest rate on May 1, 20X1 for one year with interest and principal due on April 30, 20X2. How much is interest expense for 20X2? Group of answer choices $4,000 $100,000 $6,000 $2,000arrow_forwardABC Company borrowed $100,000 at a 6% interest rate on May 1, 20X1 for one year with interest and principal due on April 30, 20X2. How much cash will be paid on December 31, 20X1? Group of answer choices $6,000 $4,000 0 $104,000arrow_forward
- Bank 1 is offering interest rate of 8.4% (compounds semiannually) on fixed deposits. Beck 2 is offering interest rate of 8.3% (compounds monthly) on fixed deposits. An investor invested amount of $15,000 for five years in the bank that is offering highest effective annual rate. What is the accumulated amount at the end of five years? a $22,683 b. $22.634 c. $22.451 d $22.982arrow_forwardMarathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600arrow_forwardLily Corp. Corp. sells on term 2/20, net 40. Total credit sale for the year are P180,000. 40% pays on the 20th day and take discounts while the rest pay on the due date. What is the average amount of accounts receivable? (Use 360-day year) a. 16,000 b. 36,667 c. 26,667 d. 12,000arrow_forward
- ABC Company borrowed $100,000 at a 6% interest rate on May 1, 20X1 for one year with interest and principal due on April 30, 20X2. How much is ABC's interest expense for the year ended December 31, 20X1? Group of answer choices $4,500 $6,000 $100,000 $4,000arrow_forwardABC Company borrowed $100,000 at a 6% interest rate on January 1, 20X1 for one year with interest and principal due on December 31, 20X1. How much will ABC have to pay in total on December 31, 20X1? Group of answer choices $100,000 $12,000 $106,000 $6,000arrow_forwardA customer takes out a loan of $150,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 8%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $36,000 B. $6,000 C. $2,383 D. $12,600arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
The Difference Between Floating and Fixed Rate | Financial Fundamentals; Author: The Financial Pipeline;https://www.youtube.com/watch?v=ebbdHJgHT_c;License: Standard Youtube License