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Answer:
The total amount of interest paid on all three loans is 8,748.
Explanation:
Each person has borrowed 5,000 for the same period and with the same interest rate. However, the repayment is made differently by each person.
We calculate the interest paid by each person, and then sum up the three interest payments.
Seth pays = [5000 x (1 + 0.12/2)^10] - 5000 = 3,954
Janice pays = 5,000 X 0.06 x 10 = 3,000
Lori pays = [(5,000 x 10) / 7.36] - 5,000 = 1,794
Total interest payment = 3,954 + 3,000 + 1,794 = 8,748
Answer and Explanation:
As we know that
The assets, expenses contains debit balance while the liabilities, revenues and stockholder equity contains credit balance
So based on this, the classifications are as follows
Particulars Type of account Normal balance Debit or credit Reason
a. Land Asset debit debit resources on the owners hand
b. Cash Asset debit debit resources on the owners hand
c. Legal Expense = expense debit debit consumption of cost
d. Accounts Receivable Asset debit debit resources on the owners hand
e. Dividends = Equity debit debit distribution made to owners
g. Notes Payable = Liability credit credit obligation made to creditors
h. Common Stock = Equity credit credit investment done by the owners
C. The adjusting entry for accrued interest on a note receivable would include a credit to interest revenue
