Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1st, 2015 "abc" company borrowed certai

On January 1st, 2015 "ABC" Company borrowed certain amount from a local bank for 10...

90.2K

Verified Solution

Question

Accounting

image
On January 1st, 2015 "ABC" Company borrowed certain amount from a local bank for 10 years. According to the loan's terms, the company is obligated to pay an amount equal to $29307 every January 1st, May 1st, and September 1st. The following table represents a loan amortization table that had been prepared for May 1st, and September 1st, 2015 payments: Date Payment Interest Reduction Balance 01/01/2015 $0 $0 $0 $???? 01/05/2015 $29,307.00 $16,000.00 $7722 $586,693.00 01/09/2015 $29,307.00 $???? $13,661.85 $7272 Instructions Based on the above information answer the following questions: What is the amount that had been borrowed from the bank on January 1st, 2015? What is the annual interest rate that had been charged by the bank? (Note: Write your answer as a decimal For example use 0.07 and Not 7%) What is the amount that must be recorded as an interest expense for the year 2015? What is the loans balance as 31/12/20152 Whor is the loon's balance as 31/12/2015 that must be presented as a non-current liability as on 31/12/20152

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students