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Sauron [17]
4 years ago
6

On April 1, Fisher Corporation borrowed $400,000 from its bank by signing a 9%, 5-year note payable. The note calls for 60 month

ly payments of $6,150, which includes both interest and principal components. a. Interest expense budgeted for April amounts to: $_______________ b. The carrying value of the note to be reported in the company's budgeted balance sheet as of April 30 is: $_______________ c. Interest expense budgeted for May amounts to (round to nearest whole dollar): $_______________ d. The carrying value of the note to be reported in the company's budgeted balance sheet as of May 31 is (round to nearest whole dollar): $_______________ Essay
Business
1 answer:
Andre45 [30]4 years ago
3 0

Answer:

a)     3,000

b) 396,850

c)      2,976.38

d)  393,873.62‬

Explanation:

a) principal x rate x time = interest

 400,000 x 0.09 x 1/12 =  3,000

b) 6,150 - 3,000 = 3,150 principal payment

400,000 - 3,150 = 396,850

c)  principal (carrying value) x rate x time = interest

 396,850 x 0.09 x 1/12 =  2,976.38

d) 396,850 - 2,976.38 = 393,873.62‬

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