Discuss the interest on this loan is stated separately

Assignment Help Accounting Basics
Reference no: EM131761714

On November 1, Year 1, Noble Co. borrowed $132,000 from South Bank and signed a 16%, six-month note payable, all due at maturity. The interest on this loan is stated separately.

1. Required information
At December 31, Year 1, Noble Co.'s overall liability for this loan amounts to:
$132,000.$135,520.$139,040.$142,560.

2. Required information
How much must Noble pay South Bank on May 1, Year 2, when the note matures?
$132,000.$137,280.$142,560.$153,120.

3. Required information
How much interest expense will Noble recognize on this note in Year 2?
$21,120.$5,280.$10,560.$7,040.

4. Required information
At December 31, Year 1, Noble Co.'s overall liability for this loan amounts to:
$132,000.$135,520.$139,040.$142,560.

5. Required information
At December 31, Year 1, the adjusting entry with respect to this note includes a:
Credit to Interest Payable for $3,520.Credit to Notes Payable for $3,520.Debit to Interest Expense for $7,040.Credit to Cash for $7,040.

Reference no: EM131761714

Questions Cloud

What are the retained earnings : What are the Retained Earnings? Equipment 43,780 Advertising expense 3,155 Rent expense 3,400
Provide a response to the authors message : Read the article "The Boiling Frog Theory" and provide a response to the author's message concerning the relationship.
Who was nelson mandela : Who was Nelson Mandela? When and how did Nelson Mandela Die? His Movie and Books?
Economic growth and political power : In the High Middle Ages, what relationships do you see between economic growth and political power? For example what do we know about the growth
Discuss the interest on this loan is stated separately : six-month note payable, all due at maturity. The interest on this loan is stated separately
Discuss the leadership style most appropriate for you : Recommendation for the leadership style most appropriate for you to achieve the business and organizational performance goals you identified.
Investiture controversy say about church-state relations : What does the Investiture Controversy say about Church-State relations? Mention monasteries and the papacy.
Explain how positioning of architectures along aggregation : Explain how the positioning of architectures along the aggregation and abstraction dimensions determines granularity and concreteness, respectively.
What is the direct labor efficiency variance : Perry Company gathered the following actual results for the current month: Units produced - 5,500. What is the direct labor efficiency variance

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd