Calculation of discount rate of the lender and passing

Assignment Help Financial Accounting

Reference no: EM13356245

Calculation of discount rate of the lender and passing journal entries.

Notes payable - discount basis. On August 1, 2009, Colombo Co's treasurer signed a note promising to pay $240,000 on December, 2009. The proceeds of the note were $232,000.

Calculate the discount rate used by the lender? Answer is 3.45% APR.

Write the journal entry to show the effects of (a) signing the note and the receipt of the cash proceeds on Aug 1, 2009. (b) Recording the interest expense for the month of September. (c) Repaying the note on December 31, 2009.

Reference no: EM13356245

Questions Cloud

Classification of different cash flow activitiescash flow : classification of different cash flow activities.cash flow classificationsfor each of the following items indicate

Computation of retained earningsretained earnings : computation of retained earnings.retained earnings computations during 2006 edgemont corporation had revenues of 230000

Calculation of preferred stock common stock and selling : calculation of preferred stock common stock and selling price.interpreting the stockholders equity section of the

Journal entry to show the effect of salesunearned revenues : journal entry to show the effect of sales.unearned revenues - ticket sales. kirkland theatre sells seasons tickets for

Calculation of discount rate of the lender and passing : calculation of discount rate of the lender and passing journal entries.notes payable - discount basis. on august 1 2009

Preparation of the cash flow statementthe following events : preparation of the cash flow statement.the following events occurred at handsome hounds grooming company during its

Preparation of income statement from the given : preparation of income statement from the given transactions.the following events occurred at handsome hounds grooming

Explanation about the main differences between a stock : explanation about the main differences between a stock dividend and a stock split.on january 1 2007 frederiksen inc.s

User Account

All Pages