Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Data Payment Interest Decrease in Balance Outstanding Balance 1/1/2023 $315,886 6/30/2023 $45,000 $9,477 $35,523 280,363 12/31/2023 $45,000 8,411 36,589 243,773 6/30/2024 $45,000 7,313 37,687 206,087
Data | Payment | Interest | Decrease in Balance | Outstanding Balance |
1/1/2023 | $315,886 | |||
6/30/2023 | $45,000 | $9,477 | $35,523 | 280,363 |
12/31/2023 | $45,000 | 8,411 | 36,589 | 243,773 |
6/30/2024 | $45,000 | 7,313 | 37,687 | 206,087 |
12/31/2024 | $45,000 | 6,183 | 38,817 | 167,267 |
6/30/2025 | $45,000 | 5,018 | 39,982 | 127,287 |
12/31/2025 | $45,000 | 3,819 | 41,181 | 86,106 |
6/30/2026 | $45,000 | 2,583 | 42,417 | 43,689 |
12/31/2026 | $45,000 | 1,311 | 43,689 | 0 |
A) What is the annual effective interest rate on this debt?
B) Write the journal entry for the interest payment on 6/30/2023.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started