Life.com issued $19 million of commercial paper on April 1 on a nine-month note. Interest was discounted at issuance at a 6% discount rate.
Complete the below table to calculate the effective interest rate on the commercial paper. (Do not round intermediate calculation. Enter your answers in whole dollars. Round "Annual Effective Rate" to 1 decimal place. (i.e., 0.123 should be entered as 12.3).)
Calculate the discount on notes payable:
Calculate the actual cash received or amount barrowed:
Now calculate the effective interest rate:
There annualized effective interest rate = 4.71204 ×
= 6.28
Life.com issued $13 million of commercial paper on April 1 on a nine-month note. Interest was discounted at issuance at a 8% discount rate. Complete the below table to calculate the effective interest rate on the commercial paper. (Do not round intermediate calculation. Enter your answers in whole dollars. Round "Annual Effective Rate" to 1 decimal place. (i.e., 0.123 should be entered as 12.3).) Life.com issued $13 million of commercial paper on April 1 on a nine-month note. Interest was...
Life.com issued $16 million of commercial paper on April 1 on a nine-month note. Interest was discounted at issuance at a 10% discount rate. Complete the below table to calculate the effective interest rate on the commercial paper. (Do not round intermediate calculation. Enter your answers in whole dollars. Round "Annual Effective Rate" to 1 decimal place. (i.e., 0.123 should be entered as 12.3).) Principal Annual Rate х Time Discount Calculation of discount $ 16,000,000 x % X 9-month rate...
Life.com issued $18 million of commercial paper on April 1 on a nine-month note. Interest was discounted at issuance at a 8% discount rate Complete the below table to calculate the effective interest rate on the commercial paper. (Do not round intermediate calculation. Enter your answers in whole dollars. Round "Annual Effective Rate" to 1 decimal place. (l.e., 0.123 should be entered as 12.3).) Principal Annual Rate X Time Discount Calculation of discount $ 18,000,000 x 9-month Conversion Factor Annual...
Life.com issued $10 million of commercial paper on April 1 on a nine-month note. Interest was discounted at issuance at a 6% discount rate. Complete the below table to calculate the effective interest rate on the commercial paper. (Do not round intermediate calculation. Enter your answers in whole dollars. Round "Annual Effective Rate" to 1 decimal place. (i.e., 0.123 should be entered as 12.3).) Principal $ 10,000,000 * Annual x 6% Time 9/12 = = Discount $ 450,000 Calculation of...
HW Problems Help Save &Exit Submi Check my work Brief Exercise 13-5 Non-interest-bearing note; effective interest rate [LO13-2] Life.com issued $13 minion of commercial paper on April 1 on a nine-month note. Interest was discounted at issuance at a 8% discount rate. Complete the below table to calculate the effective interest rate on the commercial paper. (Do not round Intermediate calculation. Enter your answers in whole dollars. Round "Annual Effective Rate" to 1 decimal place. (i.e., 0.123 should be entered...
Life.com issued $18 million of commercial paper on April 1 on a nine-month note. Interest was discounted at issuance at a 8% discount rate. Complete the below table to calculate the effective interest rate on the commercial paper. (Do not round Intermediate calculation. Enter your answers in whole dollars. Round "Annual Effective Rate" to 1 decimal place. (le., 0.123 should be entered as 12.3).) Annual x Time Discount Principal $ 18,000,000 * x Calculation of discount 81% X 9/12 1080,000...
Branch Corporation issued $11 million of commercial paper on March 1 on a nine-month note. Interest was discounted at issuance at a 13% discount rate. Prepare the journal entry for the issuance of the commercial paper and its repayment at maturity. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet < 1 2 3 Record the issuance of the...
BE13-4 Commercial Paper branch Corporation issued $12 million of commercial paper on March 1 on a nine-month note. Interest was discounted at issuance at a 9% discount rate. Prepare the journal entry for the issuance of the commercial paper and its repayment at maturity No General Journal Credit Debit Date March 1 1 2 3
The following selected transactions relate to liabilities of United Insulation Corporation. United’s fiscal year ends on December 31. 2021 Jan. 13 Negotiated a revolving credit agreement with Parish Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $30.0 million at the bank’s prime rate. Feb. 1 Arranged a three-month bank loan of $6.5 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 11% was...
3) Branch Corporation issued $15 million nterest was discounted at issuance at a 8% discount rate. issued $15 million of commercial paper on March 1 on a nine-month note. Prepare the journal entry for the issuance of journal entry for the issuance of the commercial paper and its repayment at maturity. Debit Credit Farbara Muller Services (BMS) pays its employees monthly. The payroll information is for January 2021, the first month of BMS's fiscal year. Assume none of the empl...
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