Question
On September 1 2024, Parnell Aerospace borr0wed $495,000 from Federal First international bank. The loan has an 8 year term and a 5% interest rate.
On September 1 2024, Parnell Aerospace borr0wed $495,000 from Federal First international bank. The loan has an 8 year term and a 5% interest rate. The loan is an interest-only notes payable with the principal being due in full at the end of the 8-year term. Interest payments are due anually on September 1st. Record the journal entry for the original loan transaction on September 1, 2024. Record the journal entry on December 31, 2024, to recognize the interest accrued.
PLEASE explain why you do 495000*5%*(4/12) = 8250
especially (4/12)
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Uniform Administrative Requirements Cost Principles And Audit Requirements For Federal Awards A Handbook For Institutions Of Higher Education And State And Local Governments
Authors: Andrew Shepard-Smith
1st Edition
1505298482, 978-1505298482
