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Moss County Bank agrees to lend the Cullumber Company $350000 on January 1. Cullumber Company signs a $350000, 6%, 9-month note. The entry made by
Moss County Bank agrees to lend the Cullumber Company $350000 on January 1. Cullumber Company signs a $350000, 6%, 9-month note. The entry made by Cullumber Company on January 1 to record the proceeds and issuance of the note is Interest Expense 15750 Cash 334250 Notes Payable 350000 Cash 350000 Interest Expense 15750 Notes Payable 350000 Interest Payable 15750 Cash 350000 Notes Payable 350000 Cash 350000 Interest Expense 15750 Notes Payable 365750 If a corporation issued $9180000 in bonds which pay 5% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%? $321300 $4590000 $137700 $459000 Bonds with a face value of $504000 and a quoted price of 104.25 have a selling price of $506142 $525420 $524286. $524160
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