E10.7 (LO 2) (Analyze instalment payment schedule.) The following instalment paymentschedule is for a long-term bank loan payable:Interest PeriodIssue date1mtinInstructionsCash Payment$23,097.4823.097.4823,097.4823,097.4823,097.48Interest Expense$5,000.004.095.133.145.012.147.381,099.88Reduction ofPrincipal$18.097.4819,002.3519.952.4720.950.1021.997.60PrincipalBalance$100,000.0081.902.5262,900.1742,947.7021,997.60a. Assuming payments are made annually, what is the interest rate on the bank loan?b. Prepare the journal entry to record the first instalment payment.c. What are the current and non-current portions of the bank loan after the payment atthe end of period 2?

While making the installment payment of notes payable, some portion of the payment is for the loan…

Answered: E10.7 (LO 2) (Analyze instalment…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 12MC: Which of the following accounts are used when a short-term note payable with 5% interest is honored...

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Consider the following amortization schedule: Payment #| Payment Interest Debt Payment Balance 1 966.45 750.00 216.45 149, 783.55 2 966.45 748.92 217.53 149, 566.02 3 966.45 With the exception of column one, all amounts are in dollars. Calculate z. Give your answer in dollars to the nearest dollar. Do not include commas or the dollar sign in your answer.
E10.7 (LO 2) (Analyze instalment payment schedule.) The following instalment payment schedule is for a long-term bank loan payable: Interest Period Issue date 1 2 3 4 5 Instructions Cash Payment $23,097.48 23,097.48 23,097.48 23,097.48 23,097.48 Interest Expense $5,000.00 4,095.13 3,145.01 2,147.38 1,099.88 Reduction of Principal $18,097.48 19,002.35 19,952.47 20,950.10 21,997.60 Principal Balance $100,000.00 81,902.52 62,900.17 42,947.70 21,997.60 0 ☐ a. Assuming payments are made annually, what is the interest rate on the bank loan? b. Prepare the journal entry to record the first instalment payment. c. What are the current and non-current portions of the bank loan after the payment at the end of period 2? Σ
What is the carrying value of the loans receivable as of December 31, 2022 after impairement recognition A. 8,123,0231 B. 8,000,000 C . 8,211,570 D, 9,211,570
Calculate the missing information for the installment loan that is being paid off early. Number ofPayments PaymentsMade PaymentsRemaining Sum-of-the-Digits PaymentsRemaining Sum-of-the-Digits Numberof Payments RebateFraction 36 25 11 66
rive loan is below. Payments of $1,987.26 are made monthly. Payment # Payment 1 1,987.26 2 1,987.26 3 1,987.26 Interest Debt Payment Balance 1,604.17 383.09 1,602.41 384.85 1,600.65 386.61 Provide your answer below: X Y Z Calculate the value of z, the balance of the loan at the end of month 3. Give your answer to the nearest dollar. Do not include commas or the dollar sign in your answer.
Which of the following accounts are used when a short-term note payable with 5% interest is honored (paid)? A. short-term notes payable, cash B. short-term notes payable, cash, interest expense C. interest expense, cash D. short-term notes payable, interest expense, interest payable
Calculate the missing information for the installment loan that is being paid off early. Sum-of-the- Sum-of-the- Number of Payments Payments Remaining Rebate Digits Payments Remaining Digits Number of Payments Payments Made Fraction 36 21 15 120 666. 0.180
20. On December 31, 2016, London Bank granted a P5,000,000 loan to borrower with 10% stated rate payable annually and maturing in 5 years. The loan was discounted at the market interest rate of 12%. Unfortunately, the financial condition of the borrower worsened because of lower revenue. On December 31, 2018, the bank determined that the borrower would A kick only P3,000,000 of the principal at maturity. However, it was considered likely that interest would continue to be paid on the P5,000,000 loan. The present value of 1 at 12% is .57 for five periods and .71 for three periods. The present value of an ordinary annuity of 1 at 12% is 3.60 for five periods and 2.40 for three periods.
2. The following loan is paid in full before the date of maturity. Find the amount of unearned interest. Use the Rule of 78. Finance Charge: $422 Total Number of Payments: 30 Remaining Number of Payments When Paid in Full: 16
Calculate the missing information for the installment loan that is being paid off early. Sum-of-the- Sum-of-the- Number of Payments Remaining Rebate Payments Made Digits Payments Remaining Digits Number of Payments Payments Fraction 36 21
Payment # Payment Interest Debt Payment Balance 1 1,167.34 540.54 626.80 259,873.20 2 1,167.34 539.24 628.10 259,245.10 3 1,167.34 With the exception of column one, all amounts are in dollars. Calculate the annual interest rate on this loan.
What is the APR if the monthly rate of interest a credit card company charges on outstanding balances is 1.62%? Select one: O a. APR =(1.0162)^12) -1 = 0.2127, and APR = 21.27% O b. APR = ((1.0162)^7) - 1 = 0.1191, and APR = 11.91% O C. APR =((1.0162)^52) - 1 = 1.3063, and APR = 130.63%

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