Answer:
loan interest revenue for 2020 is $720
loan interest revenue for 2021 is $240
Explanation:
The loan interest revenue in the year 2020 is for 9 months out of the total loan tenure of twelve months:
interest revenue for 2020=$16,000*6%*9/12=$720.00
This would be debited to interest receivable and credited to interest revenue account.
interest revenue for 2021=$16,000*6%*3/12=$240.00
Answer:
8.06%
Explanation:
According to the Fisher equation
( 1 + Total rate of return) = (1 + real rate of return) x ( 1 + inflation rate)
(1.14) = (1.055) x ( 1 + inflation rate)
Inflation rate = 1.080569 - 1 = 0.080569 = 8.06%
Answer:
Debit to interest expense for $4, 400
Explanation:
The journal entry is shown below:
Interest expense A/c Dr $4,400
Notes payable A/c Dr $10,808
To Cash A/c $15,208
(Being the due payment is recorded)
For due payment, we debited the interest expense and the notes payable account and credited the cash account as cash is paid for the first annual payment due on the note
