Question
The ledger of Sarasota Corp. on March 31 of the current year includes the following selected accounts before quarterly adjusting entries have been prepared: Debit
The ledger of Sarasota Corp. on March 31 of the current year includes the following selected accounts before quarterly adjusting entries have been prepared:
Debit | Credit | |||
---|---|---|---|---|
Prepaid Insurance | $3,900 | |||
Supplies | 2,550 | |||
Equipment | 25,900 | |||
FV-OCI Investments | 177,000 | |||
Accumulated DepreciationEquipment | $8,640 | |||
Notes Payable | 29,000 | |||
Unearned Rent Revenue | 8,050 | |||
Rent Revenue | 58,900 | |||
Interest Expense | -0- | |||
Salaries and Wages Expense | 13,600 |
An analysis of the accounts shows the following:
1. | The equipment depreciation is $360 per month. | |
2. | One half of the unearned rent was earned during the quarter. | |
3. | Interest of $435 has accrued on the notes payable. | |
4. | Supplies on hand total $920. | |
5. | Insurance expires at the rate of $325 per month. | |
6. | The FV-OCI Investments were purchased for $177,000 on March 1. No investments were purchased or sold after that date. The fair value on March 31 was $197,000. |
If the notes payable have been outstanding since January 1 of the current year, what is the annual interest rate on the notes payable? (Round answer to 2 decimal places, e.g. 15.25%.) what is the annual rate?
Annual Interest Rate |
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