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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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ABC Company borrowed $100,000 at a 6% interest rate on May 1, 20X1 for one year with interest and principal due on April 30, 20X2. How much is interest expense for 20X2?
Group of answer choices
$4,000
$100,000
$6,000
$2,000
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- Q3 Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $16,000 not due for three years. The interest rate on the note is 6%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What amount did Canliss borrow? (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Step 1: Calculate the PV of the Ordinary Annuity Component: Payment: ? n = ? i = ? Present Value: ? Step 2: Convert the Annuity to a Single Sum: Payment: ? n = ? i = ? Present Value: ?arrow_forwardJune 30, 20X1 Titan Corp. licensed an archive financial database to Smart Co. for the next five years. Smart is to pay Titan $10,000 at the beginning of each year. Titan and Smart has an incremental borrowing annual interest rates of 5% and 6% respectively. Determine the amount of revenue to be recognized by Titan in 20X1? $45,460 $5,000 $50,000 $44,651arrow_forward
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