Question
Pretend you are a small business owner. You apply for a business loan on November 1st of this year under the following terms: Principle -
Pretend you are a small business owner. You apply for a business loan on November 1st of this year under the following terms:
Principle - $6,000
Interest - 5%
Due - 90 days
Answer the following:
When is the loan payment due in full?
How much interest expense will be recorded in the current year?
How much interest expense will be recorded for the following year?
What is the entry that will be made once the loan is paid in full?
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Financial Accounting The Cornerstone Of Business Decision Making
Authors: Jay S Rich, Jeff Jones, Linda Ann Myers
5th Edition
0357132696, 978-0357132692
