The Continental Bank made a loan of $ 24 comma 000.00 on March 10 to Dr. Hirsch to purchase equipment for her office. The loan was secured by a demand loan subject to a variable rate ofinterest that was 5% on March 10. The rate of interest was raised to 5.25% effective July 1 and to 5.75% effective September 1. Dr. Hirsch made partial payments on the loan as follows: $1000 onMay 24; $700 on June 28; and $300 on October 22. Each payment is first applied to any accumulated interest. Any remainder is then used to reduce the outstanding principal. The terms of the noterequire payment on October 31 of any interest not paid off by partial payments. How much must Dr. Hirsch pay on October 31 ? Question content area bottom Part 1 Dr. Hirsch must pay $enter your response here on October 31. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Period 1 : March 10-June 30: 4 months @5%=24000*0.05*4/12=$500Period 2 : July 1 - August 31- 2…

Answered: The Continental Bank made a loan of $…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 9PB: Pickles R Us is a pickle farm located in the Northeast. The following transactions take place: A. On...

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The Continental Bank made a loan of $26,000.00 on March 26 to Dr. Hirsch to purchase equipment for her office. The loan was secured by a demand loan subject to a variable rate of interest that was 6% on March 26. The rate of interest was raised to 6.6% effective July 1 and to 7% effective September 1. Dr. Hirsch made partial payments on the loan as follows: $900 on May 5; $800 on June 30; and $400 on October 19. Each payment is first applied to any accumulated interest. Any remainder is then used to reduce the outstanding principal. The terms of the note require payment on October 31 of any interest not paid off by partial payments. How much must Dr. Hirsch pay on October 31? Dr. Hirsch must pay $------ on October 31.
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he following selected transactions relate to liabilities of Food Emporium whose fiscal year ends on December 31. January 26 Negotiated a line of credit with City Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $4.70 million at the bank's prime rate. March 1 Arranged a six-month bank loan of $380,000 with City Bank under the line of credit agreement. Interest at the prime rate of 9% is payable at maturity. September 1 Paid the 9% note at maturity. Record the appropriate entries, if any, on January 26, March 1, and September 1. (Enter your answers in dollars, not in millions. Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Negotiated a line of credit with City Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $4.70 million at the bank's…

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