CH3SimpleInterestProblems

CH3SimpleInterestProblems - Chapter 3 Simple Interest...

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Chapter 3 Simple Interest Problems 3131 Intermediate Financial Accounting I Note: use 360 days for total number of days in a year. 1. On December 11, the G. Baker Corporation purchases $15,000 of equipment by issuing a 30-day, 12% note payable. The amount of accrued interest on December 31 is: a. $240 b. $160 c. $ 105 d. $ 100 2. Referring to question 1, the total cash paid for interest at maturity on the note is: a. $75 b. $150 c. $800 d. $1,800 3. Referring to question 1, the total cash paid on the maturity date of the note is: a. $15,000 b. $15,240 c. $15,150 d. $15,080 4. The journal entry to record accrued interest on a short-term note payable must include a: a. debit to Interest Payable and a credit to Interest Expense b. debit to Interest Payable and a credit to Notes Payable c. debit to Interest Expense and a credit to Interest Payable d. debit to Interest Expense and a credit to Notes Payable 5. Triclinium Company signed an 18-month, $20,000, 8% note on June 1, 2006. The amount of
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CH3SimpleInterestProblems - Chapter 3 Simple Interest...

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