Chapter 1, Problem 40P

Kelly Jones and Tami Crawford borrowed $26,000 on a 7-month, 6% note from Gem State Bank to open their business, Pharoah’s Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023.   what is the entry required on January 1, 2023, when the loan is paid back?

Esther deposited $25,000 in a savings bank on January 13,2013. At that time the bank was paying 4% interest compounded quarterly. On July 13, 2015, the bank announced that it would start paying 4.5% interest, compounded quarterly. How much did Esther have to her credit on July 13, 2017? Answer: P

In order to generate additional cash for its expanding business operation, Maroon Company had the following receivable financing during the year 2021.  On February 14, the company factored P1,200,000 accounts receivable. Factoring fee was 10%. The finance company withheld 6% of the purchase price as protection against sales returns. On March 1, accounts receivable amounting to P500,000 were assigned to BPI Bank as collateral for a loan. The bank advanced 80% of the assigned accounts less finance charge of 5% based on the amount advanced.  During the month of March, Maroon collected P350,000 of the assigned accounts receivable.  The amount was remitted to BPI on April 1. This amount was applied first to interest at the rate of 1% per month based on the outstanding balance and the remainder was applied to principal. On March 19, a non-interest bearing note receivable with a face value of P50,000 was discounted with Citi Bank at a discount rate of 10%.  The P50,000 note was dated Feb. 15,…

On May 1, Year 1, Benz’s Sandwich Shop loaned $14,000 to Mark Henry for one year at 8 percent interest. Requireda. What is Benz’s interest income for Year 1?b. What is Benz’s total amount of receivables at December 31, Year 1?c. How will the loan and interest be reported on Benz’s Year 1 statement of cash flows?d. What is Benz’s interest income for Year 2?e. What is the total amount of cash that Benz’s will collect in Year 2 from Mark Henry?f. How will the loan and interest be reported on Benz’s Year 2 statement of cash flows?g. What is the total amount of interest that Benz’s earned on the loan to Mark Henry?

Mr. Dalisay applied for a bank loan with a principal of P150,000 to be paid after five years in order to purchase a vehicle. He negotiated for the stated rate of the loan at 6% wherein the current market rate is 10%. How much proceeds will Mr. Dalisay receive from the bank

Maria is a graduate student; she borrows some money to buy a new car at the beginning of her graduation year. The car dealership allows her to defer payments for 12 months. Then Maria makes 48 end-of month payments thereafter. If the original note (loan) is for $30,000 and interest in 2% per month on the unpaid balance, how much will Maria’s payment be?   Please Include equations used and cashflow diagram

On May 8, 2015, Mrs. Siega borrowed php 100,000 from Mr. Singh at 6% payable in 90 days. If the amount is equivalent to 5% in a bank, find it’s present value on July 16, 2015.

Aggressive Corporation approaches Matt Taylor, a loan officer for Oklahoma State Bank, seeking toincrease the company's borrowings with the bank from $100,000 to $150,000. Matt has an uneasyfeeling as he examines the loan application from Aggressive Corporation, which just completed itsfirst year of operations. The application included the following financial statements The income statement submitted with the application shows a net income of $30,000 in the first yearof operations. Referring to the balance sheet, this net income represents a more-than-acceptable15% rate of return on assets of $200,000.Matt's concern stems from his recollection that the $100,000 note payable reported on the balancesheet is a three-year loan from his bank, approved earlier this year. He recalls another promising newcompany that, just recently, defaulted on its loan due to its inability to generate sufficient cash flowsto meet its loan obligations.Seeing Matt's hesitation, Larry Bling, the CEO of…

On May 1, Year 1, Benz's Sandwich Shop loaned $12,000 to Mark Henry for one year at 7 percent interest. Required a. What is Benz's interest income for Year 1? b. What is Benz's total amount of receivables at December 31, Year 1? c. How will the loan and interest be reported on Benz's Year 1 statement of cash flows? d. What is Benz's interest income for Year 2? e. What is the total amount of cash that Benz's will collect in Year 2 from Mark Henry? f. How will the loan and interest be reported on Benz's Year 2 statement of cash flows? g. What is the total amount of interest that Benz's earned on the loan to Mark Henry? (For all requirements, round your answers to the nearest dollar amount.) а. Int est income b. Receivables C. d. Interest income e. Cash f. g. Interest earned