Accounting help with calculating interest expense on a note? - calculating interest expense
On 1 September 2005, "A" is a building "B" bought "by paying $ 100,000 in cash and pay the issuance of a ticket from one year to the balance of the purchase price. Interest on the note suggests, are paid an annual growth rate of 9% and at maturity. In his resume December 31, 2005, the balance, "A" is fairly presented the note and interest as follows:
Interest paid: $ 15,000
Promissory notes, 9% due 1st September 2006 $ 500,000
What is the amount of interest expense "A" is recognized in this paper in 2006?
What is the sum for the property purchased, have of "paid-A"?
How should "pay" B "on 1 September 2006, when the note matures?
Tuesday, February 2, 2010
Calculating Interest Expense Accounting Help With Calculating Interest Expense On A Note?
Subscribe to:
Post Comments (Atom)
2 comments:
If the notes payable is $ 500,000, and the issue date is September 1, 2005, and December 31, 2005, you must accrue interest 4 months, so that only 9% x 500,000 x 4 / 12 = 15000 $.
What is the amount of interest expense "A" is recognized in this paper in 2006?
In 2006, we must recognize the other 8 months of interest, so that 9% x 500,000 x 8 / 12 = $ 30,000
What is the sum for the property purchased, have of "paid-A"?
This question is not well written, but I think they want you to respond to 645,000 $ (Cost $ 600,000 + Interest Bldg $ 45,000)
How should "pay" B "on 1 September 2006, when the note matures?
$ 545,000
1. Thank you, SAE interest yu-September was 15,000 U.S. dollars for ... thats 4 months = 1 / 3 yeer. Sun, 1 yeer = 3 * 15000 = $ 45,000.
Pae yu no interest in 15,000 U.S. dollars at the end of the month of Av, 2005?
Du yu pae compound whose interest it so?
Du Yu pae NE-thang, $ delete u?
2. 9% and 1 impact yeer = $ 45,000 interest only $ 500,000
Yu Gotta EAP U.S. $ 500,000, and the date that interest you. Wenever from yu pae. If compound interest.
Post a Comment