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 25th of each month, which is automatically deducted from the checking account of Buhler Industries. Buhler took out an advance on December 2 for $235,000.00 and made a payment of $195,000.00 on January 10. The prime rate was 6.75% initially and increased to 8% on January 3. Complete the repayment schedule below by filling in the payment and principal amounts. Date Balance Annual before Interest Transaction Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance Principal Amount Balance after Transaction (-) Dec 2 Dec 25 $235,000.00 7.5% Jan 3 $235,000.00 7.5% Jan 10 $235,000.00 8.75% Jan 25 $40,000.00 8.75% 23/365 $1,110.62 $1,110.62 $235,000.00 $235,000.00 9/365 $434.59 $434.59 $235,000.00 7/365 15/365 $143.84 $394.35 $828.94 $972.78 $40,000.00 $40,000.00

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 25th of each month, which is automatically deducted from the checking account of Buhler Industries. Buhler took out an advance on December 2 for $235,000.00 and made a payment of $195,000.00 on January 10. The prime rate was 6.75% initially and increased to 8% on January 3. Complete the repayment schedule below by filling in the payment and principal amounts. Date Balance Annual before Interest Transaction Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance Principal Amount Balance after Transaction (-) Dec 2 Dec 25 $235,000.00 7.5% Jan 3 $235,000.00 7.5% Jan 10 $235,000.00 8.75% Jan 25 $40,000.00 8.75% 23/365 $1,110.62 $1,110.62 $235,000.00 $235,000.00 9/365 $434.59 $434.59 $235,000.00 7/365 15/365 $143.84 $394.35 $828.94 $972.78 $40,000.00 $40,000.00

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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