FB2100 Chapt09_solutions_Ex9-4,QS9-2, P9-1A

FB2100 Chapt09_solutions_Ex9-4,QS9-2, P9-1A - FB2100 –...

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Unformatted text preview: FB2100 – Accounting I – Semester A 2010 Solutions to Assigned Questions – Chapter 9 Exercise 9-4 (30 minutes) 1. Maturity date = November 1 + 90 days = January 30, 2010. 2. Principal ......................................................... $200,000 x Interest rate ............................................ 9% x Fraction of year (Nov. 1 – Dec. 31)....... 60/360 Total interest in 2009 ..................................... $ 3,000 3. Principal ......................................................... $200,000 x Interest rate ............................................ 9% x Fraction of year (Jan. 1 – Jan. 30)........ 30/360 Total interest in 2010 ..................................... $ 1,500 4a. 2010 Nov. 1 Cash ........................................................................ 200,000 Notes Payable .................................................. 200,000 Borrowed cash by issuing an interest-bearing note. 4b. 2010 Dec. 31 Interest Expense .................................................... 3,000 Interest Payable ............................................... 3,000 Accrued interest on note payable. 4c. 2011 Jan. 30 Interest Expense .................................................... 1,500 Interest Payable .....................................................Interest Payable ....
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This note was uploaded on 10/20/2011 for the course ACC fb200 taught by Professor Tony during the Spring '11 term at American University in Bulgaria.

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FB2100 Chapt09_solutions_Ex9-4,QS9-2, P9-1A - FB2100 –...

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