Question
The Company has a loan due to the bank that requires monthly payments of interest based on a 360 day calendar year. Please answer the
- The Company has a loan due to the bank that requires monthly payments of interest based on a 360 day calendar year. Please answer the following questions:
Debt Balance at September 1st: $2,000,000
Annual Cash Interest Rate: 9.00% (compounded on a monthly basis)
Annual Paid-In-Kind Interest Rate: 2.00% (compounded and added to principle on a monthly basis)
What are the correct journal entries to record for September and October?
How much cash interest will the Company be required to pay for September and October?
What will the debt balance due to the bank be at October 31?
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Electronic Data Processing Controls And Auditing
Authors: W.Thomas Porter
1st Edition
0534009336, 978-0534009335
