What is the interest rate on the note payable

Reference no: EM131884826

Problem

Journal Entries, Year 2

1. What is the yearly payment amount require for Note Payable (assume its an installment note)?

2. What is the interest rate on the Note Payable?

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1	Jun. 30	Interest Expense		18,427.00
2		Premium on Bonds Payable		2,948.00
3		Cash			21,375.00
4	30	Interest Expense		41,560.00
5		Discount on Bonds Payable			6,560.00
6		Cash			35,000.00
7	30	Bonds Payable		2,000,000.00
8		Gain on Redemption of Bonds			41,000.00
9		Discount on Bonds Payable			65,600.00
10		Cash			1,893,400.00
11	Sep. 30	Interest Expense		67,500.00
12		Interest Payable		22,500.00
13		Notes Payable		342,887.00
14		Cash			432,887.00
15	Dec. 31	Interest Expense		17,357.00
16		Interest Payable			17,357.00
17	31	Interest Expense		18,427.00
18		Premium on Bonds Payable		2,948.00
19		Cash			21,375.00
20	31	Income Summary		163,271.00
21		Interest Expense			163,271.00
22	31	Bonds Payable		475,000.00
23		Premium on Bonds Payable		23,584.00
24		Loss on Redemption of Bonds		20,600.00
25		Cash			519,184.00

Reference no: EM131884826

Questions Cloud

Which project has the higher npv : Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects?

How much is your mortgage payment with the pmi : You decide to buy a home in January 2017 for $200,000 and finance it with a 15% downpayment and a 30 year fixed rate mortgage at 4.5%.

What is the journal entry for both given transactions : What is the Journal Entry for both transactions: ABC received $300,000 in cash for issuing 10,000 shares of $9.00 par common stock.

Determine the spot exchange rate : The "Conniving Kangaroos" company has 10 million shares of common stock outstanding.

What is the interest rate on the note payable : What is the yearly payment amount require for Note Payable (assume its an installment note)? What is the interest rate on the Note Payable?

What is universal banking : Compare commerciale banking with investment banking. what is universal banking?

Why should management bother to make such a distinction : What are differences and why should management bother to make such a distinction about CapEx projects being special.

Prepare the preceding transactions in a general journal : Prepare the preceding transactions in a general journal. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".

Describe googles investment strategy : Describe Google's investment strategy? What are the factors driving this strategy? How might shareholders eventually react to this strategy?

User Account

All Pages