Question
Candy Company borrowed $50,000 on September 30, 2021. The loan had a 4% interest rate and is due on September 30, 2022. Round your answers
Candy Company borrowed $50,000 on September 30, 2021. The loan had a 4% interest rate and is due on September 30, 2022. Round your answers below to the nearest dollar.
1)Calculate the interest incurred by Candy Company during 2021. Where will this appear in the financial statements for the year ended December 31, 2021?
2)How much interest will Candy Company incur in 2022?
3)How much will Candy Company pay the bank on September 30, 2022? How will the repayment impact the balance sheet?
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Finance The Basics
Authors: Erik Banks
3rd Edition
1138919780, 9781138919785
