The McAllister Company borrowed $40,000 from a bank on January 1, 2021 at an interest rate of 4 percent; the loan will be repaid in full at the end of the two-year term. What amount of interest expense will the company record in its financial statements for the year 2022? As needed, round your final answer (but not intermediate steps) to the nearest whole dollar and enter as a positive number.

The McAllister Company borrowed $40,000 from a bank on January 1, 2021 at an interest rate of 4 percent; the loan will be repaid in full at the end of the two-year term. What amount of interest expense will the company record in its financial statements for the year 2022? As needed, round your final answer (but not intermediate steps) to the nearest whole dollar and enter as a positive number.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

28) on August 1, 2018, Turner manufacturing lands cash and excepts a $11,000 note receivable that offers 12% interest and is due in nine months. How would Turner record the year-end adjustment to accrue interest in 2018? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)
Upon January 1, 2020, Sally Corp. borrowed $360,000 from County Bank and signed a 15-year note payable. The loan includes a 4% interest rate and a fixed yearly payment of $32,379. Payments will commence on January 1, 2021. What portion of the payment made on January 1, 2022 will be used for involvement?
On December 1, 2022, HEMI obtained a $10,000,000 five-year loan with annual equal principal repayments of $2,000,000 due November 30 of each year. Interest at 5% per year is payable annually with the principal repayment. HEMI has not paid any amounts on this loan in the October 31, 2023 fiscal year. HEMI's Accountant asks you: a. Provide October 31, 2023, adjusting journal entry to record interest owing on the loan
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
On October 1, 2020 John's Barber Shop borrowed $14,000 at 8% interest, with principal and interest due on September 31, 2021. What amount of interest payable should John's Barber Shop report on their December 31, 2020 Balance Sheet with regards to this loan?
On the attached problem. Calculate the 2021 year-end adjusted balances of Interest Payable and Interest Expense (assuming the balance of interest Payable at the beginning of the year is $0). Are these numbers the $990 for both and if so is one of the numbers negative?
On December 31, 2023, Sandy Company has a Note Receivable of $6,000. The note will be collected in installments. $1,200 is due on December 31, 2024 and $1,200 is due every year after December 31, 2024. The classification of the note on Sandy Company's balance sheet at December 31, 2023 is : A) $4,800 is a current asset and $1,200 is a long-term asset. B) all $6,000 is a long-term asset. C) all $6,000 is a current asset. D) $1,200 is a current asset and $4,800 is a long-term asset.
Crane Curtin borrowed $33,300 on July 1, 2022. This amount plus accrued interest at 8% compounded annually is to be repaid on July 1. 2027. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) How much will Crane have to repay on July 1, 2027? (Round answer to 2 decimal places, eg. 25.25.) Amount to be repaid on July 1, 2027 24
PLEASE FAST
On January 1, 2018, King Inc. borrowed $190,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $47,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.) If an amount box does not require an entry, leave it blank. Jan. 1 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 Dec. 31 fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15
Camden Biotechnology began operations in September 2024. The following selected transactions relate to liabilities of the company for September 2024 through March 2025. Camden's fiscal year ends on December 31. Its financial statements are issued in April. 2024 a. On September 5, opened checking accounts at Second Commercial Bank and negotiated a short-term line of credit of up to $17,000,000 at the bank's prime rate (12.5% at the time). The company will pay no commitment fees. b. On October 1, borrowed $14 million cash from Second Commercial Bank under the line of credit and issued a five-month promissory note. Interest at the prime rate of 12% was payable at maturity. Management planned to issue 10-year bonds in February to repay the note. c. Received $4,800 of refundable deposits in December for reusable containers used to transport and store chemical-based products. d. For the September-December period, sales on account totaled $4,700,000. The state sales tax rate is 3% and the…
Please answer practice problem

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS