LoansScotiabank approved a $230,000.00 line of credit for Buhler Industries at prime + 1%. It requires only the repayment of accrued interest on the 24th of each month, which is automatically deducted from thechecking account of Buhler Industries. Buhler took out an advance on December 6 for $160,000.00 and made a payment of $130,000.00 on January 16. The prime rate was 5.25% initially and increased to6.5% on January 7.Complete the repayment schedule below by filling in the payment and principal amounts.DateBalance Annualbefore InterestTransaction RateNumber Interestof Days ChargedAccruedInterestPayment(+) orAdvance(-)PrincipalBalance afterAmountTransactionDec 6Dec 24$160,000.00$160,000.006.25%18/365$493.15 $493.15$160,000.00Jan 76.25%$160,000.0014/365$383.56$383.56$160,000.00Jan 16 $160,000.007.5%9/365$295.89 $679.45$30,000.00Jan 24 $30,000.007.5%8/365$49.32$728.77$30,000.00You can earn partial credit on this problem.

The objective of the question is to complete the repayment schedule for Buhler Industries' line of…

Answered: Loans Scotiabank approved a $230,000.00…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 16P

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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at the end of the month for 12 months. The interest rate is 12% annually. If the monthly payments are $888.49, what is the journal entry to record the cash received on Jan. 1 and the first payment made on Jan. 31?
Scotiabank approved a $250,000 line of credit for Buhler Industries at prime + 1%. It requires only the repayment of accrued interest on the 27th of each month, which is automatically deducted from the chequing account of Buhler Industries. Buhler took out an advance on December 2 for $200,000 and made a payment of $125,000 on January 12. The prime rate was 6.5% initially and increased to 7.5% on January 4. Calculate the total interest charged to Buhler Industries on December 27 and January 27.
Scotiabank approved a $280,000.00 line of credit for Buhler Industries at prime + 0.75%. It requires only the repayment of accrued interest on the 28th of each month, which is automatically deducted from the checking account of Buhler Industries. Buhler took out an advance on December 15 for $240,000.00 and made a payment of $200,000.00 on January 18. The prime rate was 6.25% initially and increased to 7.25% on January 7. Complete the repayment schedule below by filling in the payment and principal amounts. Date Balance Annual before Interest Transaction Rate Number of Days Interest Accrued Charged Interest Payment (+) or Principal Advance Amount Balance after Transaction (-) Dec 15 $240,000.00 Dec 28 $240,000.00 7% 13/365 $598.36 $598.36 $240,000.00 Jan 7 $240,000.00 7% 10/365 $460.27 $460.27 $240,000.00 Jan 18 $240,000.00 8% 11/365 $578.63 $1,038.90 $40,000.00 Jan 28 $40,000.00 8% 10/365 $87.67 $1,126.57 $40,000.00
Scotiabank approved a $250,000.00 line of credit for Buhler Industries at prime + 1%. It requires only the repayment of accrued interest on the 24th of each month, which is automatically deducted from the checking account of Buhler Industries. Buhler took out an advance on December 18 for $195,000.00 and made a payment of $160,000.00 on January 16. The prime rate was 6.25% initially and increased to 7.25% on January 5. Complete the repayment schedule below by filling in the payment and principal amounts. Date Balance Annual before Interest Transaction Rate Number of Days Interest Accrued Charged Interest Payment (+) or Advance Principal Amount Balance after Transaction (-) Dec 18 $195,000.00 Dec 24 $195,000.00 7.25% 6/365 $232.40 $232.40 $195,000.00 Jan 5 $195,000.00 7.25% 12/365 $464.79 $464.79 $195,000.00 Jan 16 $195,000.00 8.25% 11/365 $484.83 $949.62 $35,000.00 Jan 24 $35,000.00 8.25% 8/365 $63.29 $1,012.91 $35,000.00
Scotiabank approved a $230,000.00 line of credit for Buhler Industries at prime + 1%. It requires only the repayment of accrued interest on the 24th of each month, which is automatically deducted from the checking account of Buhler Industries. Buhler took out an advance on December 2 for $195,000.00 and made a payment of $120,000.00 on January 13. The prime rate was 6.5% initially and increased to 7.5% on January 2. Complete the repayment schedule below by filling in the payment and principal amounts. Payment Date Balance Annual before Interest Transaction Rate Number of Days Interest Charged Interest Accrued (+) or Advance Principal Amount Balance after Transaction (-) Dec 2 $195,000.00 Dec 24 $195,000.00 7.5% 22/365 $881.51 $881.51 $195,000.00 Jan 2 $195,000.00 7.5% 9/365 $360.62 $360.62 $195,000.00 Jan 13 $195,000.00 8.5% 11/365 $499.52 $860.14 $75,000.00 Jan 24 $75,000.00 8.5% 11/365 $192.12 $1,052.26 $75,000.00
Home Run Sports has an operating loan with CIBC. The interest rate is set at prime + 3.25%, and on the 17th of every month a payment in the amount of 4% of the current balance is automatically taken from the borrower’s chequing account. The prime rate is currently 5.75%. On March 7, Home Run Sports took a first advance of $6,000. It took additional advances of $10,000, $8,000, and $12,000 on March 28, April 17, and May 24, respectively. It made payments of $4,000, $2,500, and $10,000 on April 10, May 17, and May 29. The prime rate increased by 0.25% on March 31 and by an additional 0.25% on May 31. Create a repayment schedule and calculate the total interest paid from March 7 to June 17
delta corporation obtained a $45, 000 loan at a rate of prime +1.15% on July 18. Fixed payments of $3500 are due on the 25th of each month, beginning August 25. The prime rate was 3.85% on july 18 and rose to 4% on september 6. What is the outstanding loan balance immediately after the september 25th payment?(use 365 days a year. Do not round immediate calculations. Round your final answer to 2 decimal places.)
ABC Company negotiated a $250,000 revolving line of credit with the Bank of Montreal at prime plus 3%. On the twentieth of each month, interest is calculated (up to but not including the twentieth) and deducted from the company's savings account. If the initial loan advance of $25,000 on July 3 was followed by a further advance of $40,000 on July 29, how much interest was charged on July 20 and August 20? The prime rate was at 4% on July 3 and fell to 2.75% on August 5 i need final answer only
ABC Company negotiated a $250,000 revolving line of credit with the Bank of Montreal at prime plus 3%. On the twentieth of each month, interest is calculated (up to but not including the twentieth) and deducted from the company's savings account. If the initial loan advance of $25,000 on July 3 was followed by a further advance of $40,000 on July 29, how much interest was charged on July 20 and August 20? The prime rate was at 4% on July 3 and fell to 2.75% on August 5
Ackerman Company enters into an IRG arrangement with Westbank for a 9 months, $800,000 loan starting 3 months from now. The IRG rate is at 11% and the bank quotes a premium of $4,000. REQUIRED: Compute for the effective interest rate if the actual interest rate 3 months from now is 8%.

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