2) On July 1, 2020 you borrowed $8,000 from the bank and purchased 400 shares in Gone Ltd. for $20 per share. You had read online that Gone Ltd. would be paying dividends of $3.00 a share during the last half of 2020. The dividend payment didn't happen as expected and you received a total of $100 in eligible dividends during 2020. On December 31 you paid the bank loan interest of $240. On her 2020 tax return, Esther will report: A) Net Property Income of $100. B) Net Property Income of $138. C) Net Property Income of $0. D) Net Property Loss of $102.
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- 1)What are the proceeds of $1,000,000 deposited in a bank on July 10 for 1 month at 1.5%? Take care to apply “money market” rules and use the proper “day count.” 2) What is the present value as of July 11 of $1MM to be paid January 11 2021 at a (discount) rate of 2%? (Same instructions as in #1)Melinda Almazan, an angel investor decided to invest P1,200,000 excess cash in certificate of deposit on April 1. 2019 The certificate carried an 8% annual rate of Interest and a 1-year term to maturity, Interest will be withdrawn monthly (disregard tax effects). a 4. What is the amount of interest receivable as of Dec. 31, 2019? 5. What amount of cash will be collected for interest revenue in 2020? 6. What amount of interest revenue will be recognized in 2020? 7. What is the amount of interest receivable as of Dec. 31, 2020?Dave borrowed $550 on January 1, 2022, and paid it all back at once on December 31, 2022. The bank charged him a $3.50 service charge, and interest was $40.70. What was the APR? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Annual percentage rate %
- You deposit $100, $150, & $200 in a bank account at the end of years 1,2,& 3 and earn 7%interest. If (P/G, 7%, 3)=2.506 and (A/P, 7%, 3)=.3811 what is the present value (now) ofthese deposits.On January 1, 2011 you invested $1,000 into a mutual fund that has been set up as a Roth IRA. You do not make any other deposits into this Roth IRA. On January 1, 2015 your account balance is $2,280. First, what has been your average annual rate of returns over the four-year period? Second, how much of the current account value of $2,280 could you withdraw without penalty on January 1, 2015 to put toward the down payment of your first home?Kinsella Seed borrowed $200,000 on October 1, 2022, at 10% interest. The interest and principal are due on October 1, 2023. What journal entry should be made with respect to the interest payment on October 1, 2023? a. Debit Cash 20,000; credit Interest Expense 15,000; credit Interest Payable 5,000. b. Debit Interest Expense 15,000; credit Cash 15,000. c. Debit Interest Expense 20,000; credit Cash 20,000. d. Debit Interest Expense 15,000; debit Interest Payable 5,000; credit Cash 20,000. Feedback Area
- Zuhoor Muscat Company borrowed RO 240,000 from the bank signing a 8%, 6-month note on October 1, 2020. The recorded amount of accrued interest expense on December 31, 2020 will be: a. None of the options are correct. Ob. RO 40,000. O c. RO 240,000. Od. RO 4,800. O e. RO 9,600. NEXT PAGE 4440 025 Type here to search B. red by ws 10 S acerKinsella Seed borrowed $207,000 on October 1, 2023, at 10% interest. The interest and principal are due on October 1, 2024. In addition to a debit to Note Payable for $207,000, what should the journal entry for repayment on October 1, 2024 include? Oa, Debit Interest Expense $5,175; debit Interest Payable $15,525; credit Cash $227,700 Ob. Debit Interest Expense $15,525; credit Cash $222.525. Oc. Debit Interest Expense $20,700, credit Cash $227,700. Od. Debit Interest Expense $15,525, debit Interest Payable $5,175, credit Cash $20,700Abardeen Corporation borrowed $136,000 from the bank on October 1, 2018. The note had an 7 percent annual rate of interest and matured on March 31, 2019. Interest and principal were paid in cash on the maturity date. Required What amount of cash did Abardeen pay for interest in 2018? What amount of interest expense was recognized on the 2018 income statement? What amount of total liabilities was reported on the December 31, 2018, balance sheet? What total amount of cash was paid to the bank on March 31, 2019, for principal and interest? What amount of interest expense was reported on the 2019 income statement?
- On 1/1/2020, the Key Bank granted a loan to XYZ Company of $5,000,000 with 10% interest payable at end of each year (12/31...). The loan due after 4 years and XYZ Company signed a note payable for the loan amount. XYZ was able to pay the interest for 2020 and 2021. At end of year 3 (2022), XYZ Company was I financial difficulty and did not pay due interest. In January 2023 (beginning of year 4, the Key bank assessed the loan situation and agreed with XYZ to restructure the loan as follows: a. Forgive the accrued interest of year 3 b. Extend the maturity of the note 2 more years c. Reduce interest rate to $300,000 a year d. Reduce the principal of the loan to $3,000,000. Required: Make the necessary restructuring entries to implement the agreement in the books of both: a. The bank: b. XYZ CompanyOn January 1, 2024, a business borrowed $12,000 on a five-year, 8% note payable. At December 31, 2024, the business should record OA. interest payable of $960. OB. note receivable of $12,000. OC. cash payment of $12,000. OD. nothing. (The note is already on the books.)Florenda Quino Forwarders borrowed P600,000 from the bank on Sept. 1, 2019. The note carried an 8% annual rate of interest and was set to mature on Feb. 29, 2020. Interest and principal were paid in cash on the maturity date. Required: 1. What was the amount of interest expense paid in cash in 2019? 2. What was the amount of interest expense recognized on the 2019 income statement? 3. What was the amount of total liabilities shown on the 2019 balance sheet? 4. What was the total amount of cash that was paid to the bank on Feb. 29, 2020 for principal and interest? 5. What was the amount of interest expense shown on the 2020 income statement?