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nata0808 [166]
3 years ago
12

Q 10.25: Admire County Bank agrees to lend Givens Brick Company $600,000 on January 1st. Givens Brick Company signs a $600,000,

8%, 9-month note. Assuming that interest has already been accrued to September 30th, what entry will Givens Brick Company make to pay off the note and interest at maturity
Business
1 answer:
Shtirlitz [24]3 years ago
7 0

Answer:

Entry is given below

Explanation:

As Givens brick company is paying off the liability of note payable and the interest amount therefore, it will be debited as it is a decrease in liability. Cash will be credited as it is our asset and its decreasing.

Entry                      DEBIT          CREDIT

Notes payable     $600,000

Interest                 $36,000(w)

Cash                                           $636,000

Working

Interest = $600,000 x 8% x9/12

Interest = $36,000

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A service contract for a video projection system costs $80 a year. You expect to use the system for six years. Instead of buying
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The future value of the annual amounts after six years, earning an annual rate of return of 3% is $517.47

What is the future value of an ordinary annuity of $80 per year for six years earning a rate of 3% annually?

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FV=annual savings*(1+r)^N-1/r

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FV=$80*(1+3%)^6-1/3%

FV=$80*(1.03)^6-1/0.03

FV=$80*(1.194052296529-1)/0.03

FV=$80*0.194052296529/0.03

FV=$517.47

brainly.com/question/14761171

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