B-12.05 Worksheet

B-12.05 Worksheet - The loan was originated on November 1...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Name: Date: Section: B-12.05 The corrections are noted below in blue: The first loan was a one-year loan for $100,000, created on November 1 of the current year. It bears interest at 8%, with interest based on the "rule of 78s." Calculations: $100,000 X 8% X 2/12 = $1,333.33 The second loan is due on demand and was for $250,000.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: The loan was originated on November 1 of the current year, and it bears interest at 9%, using a 360-day year assumption. Calculations: $250,000 X 9% X 2/12 = $3,750.00 The financial statement implications of the above corrections are...
View Full Document

Ask a homework question - tutors are online