(Figure)Marathon Nuts transforms an effective $130,100000 account payable towards a primary-name notice payable, that have an annual interest rate of 6%, and you will payable for the five weeks. How much appeal usually Race Crazy owe after five weeks?
- $2,600
- $eight,800
- $137,800
- $132,600
Concerns
An initial-title notes payable has no much time-title qualities and that is supposed to be paid-in complete within the company’s performing several months (below per year). The current portion of a good noncurrent mention payable depends away from out-of a lengthy-term personal debt it is simply thought to be a current accountability when part of the much time-label notice payable flow from. The rest remains a lengthy-name responsibility.
(Figure)Jain Companies celebrates a short-identity notice payable. Principal with the notice is actually $425,100, having a yearly interest rate of 3.5%, due into the 6 months. What log entry is made whenever Jain celebrates the new mention?
Do so Lay A great
(Figure)Barkers Cooked Merchandise sales puppy snacks out of a provider toward March 2 at a quantity of 6,one hundred thousand treats from the $step one for each and every remove. Regards to the acquisition is actually 2/10, n/30. Barkers pays 1 / 2 of the total amount due in money on February twenty eight however, never spend the money for remaining balance in five days. New vendor renegotiates the conditions toward February cuatro and allows Barkers to transform their get fee towards a preliminary-title notice, with a yearly rate of interest from 6%, payable when you look at the 9 days.
(Figure)Explore recommendations regarding (Figure)pute the interest costs due whenever Barkers honors brand new mention. Let you know brand new journal entry to admit payment of your own small-title note to your December 4.
(Figure)Scrimiger Shows desires posting its machines as well as on ount from $five-hundred,000. The new regards to the mortgage is dos.9% annual rate of interest and you will payable when you look at the 8 days. Notice flow from for the monthly installments every month.
Compute the attention costs owed each month. Let you know the new journal usage of accept the interest payment on October 20, and admission to own commission of one’s short-term note and you will last appeal percentage on 20. Round to your nearest cent if necessary.
Do so Lay B
(Figure)Airplanes Unlimited purchases plane bits away from a vendor to your February 19 from the an amount of cuatro,800 bits on $ per area. Terms of the purchase is actually 3/10, n/30. Airplanes pays one to-third of count due when you look at the cash on March 30 but you should never pay the remaining balance due. Brand new provider renegotiates the brand new terms and conditions on April 18 and allows Planes to transform their purchase percentage to the an initial-name mention, which have a yearly interest rate out-of 9%, payable inside the half a year.
(Figure)Play with suggestions of (Figure)pute the attention costs owed when Planes Unlimited celebrates brand new note. Let you know new log use of accept percentage of one’s quick-term notice to your Oct 18.
(Figure)Entire Makes wants to upgrade its equipment, as well as on January twenty four the organization removes a loan of the financial institution throughout the level of $310,100000. Brand new terms of the loan is actually 6.5% yearly interest, payable within the 90 days. Attention is born within the monthly installments every month.
Compute the eye bills due per month. Show the newest journal access to admit the interest payment with the March 24, and also the entry getting fee of the quick-name note and you can finally notice payment on April 24. Round to the nearest cent if required.
State Place An excellent
- Into July step three, loans with no credit check North Dakota the business requests thirty fountains to have $1,200 for every water feature, to the credit. Regards to the purchase was 2/10, n/30, invoice dated July step 3.
- Toward ount owed and renegotiates which have Kirkland. Kirkland believes to convert the debt owed to the a primary-term note, having a keen 8% annual interest, payable in 2 months out-of August step 3.