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The following table is notes payable owed by Borders Book Sellers, Inc., as of December 31, 2022. Calculate the interest to be accrued for each
The following table is notes payable owed by Borders Book Sellers, Inc., as of December 31, 2022.
- Calculate the interest to be accrued for each of the notes as of December 31, 2022. Show all calculations.
- State what would be reported in total on the income statement and the balance sheet for these notes. Indicate clearly what it would be called and the amounts on both the income statement and the balance sheet. Indicate whether it would be an operating item or non-operating item on the income statement and a current or non-current item on the balance sheet.
Lender | Date of Note | Principal | Interest Rate | Term |
Centric Bank | 11/01/22 | $100,000 | 3.0% | 3 months |
Keystone Bank | 10/01/22 | $ 50,000 | 3.5% | 6 months |
First Fourth Bank | 08/1/22 | $ 40,000 | 4.5% | 1 year |
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