Question
1 The bank notes, issued August 1, 2021, are due on July 31, 2022, and pay interest at a rate of 9%, payable at maturity.
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1
The bank notes, issued August 1, 2021, are due on July 31, 2022, and pay interest at a rate of 9%, payable at maturity.
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2
The mortgage note is due on March 1, 2022. Interest at 8% has been paid up to December 31 (assume 8% is a realistic rate). Manufacturing intended at December 31, 2021, to refinance the note on its due date with a new 10-year mortgage note. In fact, on March 1, Manufacturing paid $258,000 in cash on the principal balance and refinanced the remaining $992,000.
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3
Included in the accounts receivable balance at December 31, 2021, were two subsidiary accounts that had been overpaid and had credit balances totaling $18,700. The accounts were of two major customers who were expected to order more merchandise from Manufacturing and apply the overpayments to those future purchases.
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4
On November 1, 2021, Manufacturing rented a portion of its factory to a tenant for $27,600 per year, payable in advance. The payment for the 12 months ended October 31, 2022, was received as required and was credited to rent revenue.
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