On 1/1, $400,000 of specific accounts receivable of Annie's Animal Shop are assigned as collateral on a loan with the Bank. Annie's Animal Shop and the Bank both agreed to the following estimates: Sales discounts: $10,000, Sales returns $21,000, and Credit Loss: $19,000. The loan is due in 5 years and has an interest rate of 10%. The finance charge is 1%. a) How would Annie's Animal Shop be affected? b) How would the Bank be affected?
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- A company lends its supplier $154,000 for 3 years at a 10% annual interest rate. Interest payments are to be made twice a year. The entry to record the establishment of the loan includes a debit to: Multiple Choice Interest Receivable and a credit to Interest Revenue for $7700. Notes Receivable and a credit to Cash for $154,000. Cash and a credit to Notes Payable for $154,000. Cash and a credit to Interest Revenue for $15,400.Sheridan Service has a line of credit loan with the bank. The initial loan balance was $8000.00. Payments of $3000.00 and $3500.00 were made after three months and nine months respectively. At the end of one year, Sheridan Service borrowed an additional $4500.00. Ten months later, the line of credit loan was converted into a collateral mortgage loan. What was the amount of the mortgage loan if the line of credit interest was 7% compoundedSheridan Service has a line of credit loan with the bank. The initial loan balance was $8000.00. Payments of $3000.00 and $4000.00 were made after four months and eight months respectively. At the end of one year, Sheridan Service borrowed an additional $5000.00. Six months later, the line of credit loan was converted into a collateral mortgage loan. What was the amount of the mortgage loan if the line of credit interest was 7% compounded monthly? The amount of the loan is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
- Sheridan Service has a line of credit loan with the bank. The initial loan balance was $7000.00. Payments of $2500.00 and $3000.00 were made after five months and nine months respectively. At the end of one year, Sheridan Service borrowed an additional $4000.00. Ten months later, the line of credit loan was converted into a collateral mortgage loan. What was the amount of the mortgage loan if the line of credit interest was 7% compounded monthly? The amount of the loan is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)Simple Simon's Bakery purchases supplies on terms of 1.1/10, net 25. If Simple Simon's chooses to take the discount offered, it must obtain a bank loan to meet its short-term financing needs. A local bank has quoted Simple Simon's owner an interest rate of 10.6% on borrowed funds. Should Simple Simon's enter the loan agreement with the bank and begin taking the discount? (Hint: Use 365 days for a year.) The cost of forgoing the discount is %. (Round to one decimal place.) Should Simple Simon's enter the loan agreement with the bank and begin taking the discount? (Select the best choice below.) A. Simple Simon's should enter into the loan agreement but not begin taking the discount. B. Need more information to answer the question. OC. Simple Simon's should enter into the loan agreement with the bank and begin taking the discount. D. Simple Simon's should not enter into the loan agreement but should begin taking the discount.A local business received a $45,000 loan at 4.95% compounded monthly. The business settled the loan with quarterly payments of $625. a. How many payments are required to settle the loan? Round up to the nearest whole payment. b. What was the interest portion of payment 61? $0.00 Round to the nearest cent c. What was the size of the final payment? Round to the nearest cent.
- Simple Simon's Bakery purchases supplies on terms of 1.7/10, net 25. If Simple Simon's chooses to take the discount offered, it must obtain a bank loan to meet its short-term financing needs. A local bank has quoted Simple Simon's owner an interest rate of 10.2% on borrowed funds. Should Simple Simon's enter the loan agreement with the bank and begin taking the discount? (Hint: Use 365 days for a year.) The cost of forgoing the discount is %. (Round to one decimal place.) Should Simple Simon's enter the loan agreement with the bank and begin taking the discount? (Select the best choice below.) A. Simple Simon's should enter into the loan agreement with the bank and begin taking the discount. B. Simple Simon's should not enter into the loan agreement but should begin taking the discount. C. Simple Simon's should enter into the loan agreement but not begin taking the discount. D. Need more information to answer the question.Paul and Sandy Moede signed an $8,100 note at Citizen's Bank. Citizen's charges a 6.4% discount rate. Assume the loan is for 260 days. a. Find the proceeds. Note: Use 360 days a year. Round your intermediate calculations and final answer to the nearest cent. Proceeds b. Find the effective rate charged by the bank. Note: Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest tenth percent. Effective rate %A local business received a $45,000 loan at 4.00% compounded semi-annually. The business settled the loan with monthly payments of $875. a. How many payments are required to settle the loan? Round up to the nearest whole payment. 57 56 55 58 b. What was the interest portion of payment 19? $104.31 $101.03 $108.16 $95.67 c. What was the size of the final payment? $400.50 $407.97 $404.87 $395.79
- Paul and Sandy Moede signed an $7,500 note at Citizen’s Bank. Citizen’s charges a 5.4% discount rate. Assume the loan is for 270 days.a. Find the proceeds. (Use 360 days a year. Round your intermediate calculations and final answer to the nearest cent.) Proceeds b. Find the effective rate charged by the bank. (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest tenth percent.) Effective RateSheridan Service has a line of credit loan with the bank. The initial loan balance was $6000.00. Payments of $2000.00 and $2500.00 were made after five months and eight months respectively. At the end of one year, Sheridan Service borrowed an additional $4000.00. Nine months later, the line of credit loan was converted into a collateral mortgage loan. What was the amount of the mortgage loan if the line of credit interest was 5% compounded monthly? The amount of the loan is $Simple Simon's Bakery purchases supplies on terms of 1.5/10, net 30. If Simple Simon's chooses to take the discount offered, it must obtain a bank loan to meet its short-term financing needs. A local bank has quoted Simple Simon's owner an interest rate of 10.9% on borrowed funds. Should Simple Simon's enter the loan agreement with the bank and begin taking the discount? (Hint: Use 365 days for a year.)