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Do i have this interest payable right? I'm not sure where it says total through maturity if I have that right. And I know I'm
Do i have this interest payable right? I'm not sure where it says total through maturity if I have that right. And I know I'm going to need assistance in the December 1 journal entry
915 Question 11 (of 12) The following selected transactions relate to liabilities of United Insulation Corporation. United's fiscal year ends on December 31, 2013 Jan. 13 Negotiated a revolving credit agreement with Parish Bank that can be renewed annually upon bank Feb.1 Arranged a three-month bank loan of $4.2 million with Parish Bank under the line of credit May 1 Paid the 14% note at maturity approval. The amount available under the line of credit is $25.0 million at the bank's prime rate. areement Interest at the prime rate of 14% was payable at maturity. Dec. 1 Supported by the credit line, issued $15.9 million of commercial paper on a nine-month note Interest was discounted at issuance at a 13% discount rate. 31 Recorded any necessary adjusting entry(s) 2014 Sept.1 Paid the commercial paper at maturity Required: Calculate the total interest payable through maturity also calculate the interest payable for the year ended December 31, 2013 and December 31, 2014. (Enter your answers in whole dollars.) x Time I 3-month note Total through maturity Interest Principlx Rate 4,200,000 x Princi 14 % 3/12S147.000 th commercial paperPrin x Rate Time Total through maturity 2013 interest 2014 interest 2,500,000 x 2,500,000 x $2,500,000 x 14% x| 12/12 -S 350,000 14 % x 12012 |;Is 350.000 14% x: 9/12 |= $ 262,500 Step by Step Solution
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