Sabrina Company borrowed $225,000 to buy an equipment on January 1, 2019, and signed a 7% instalment note requiring annual equal payments of $24,704, including principal and interest at the end of every year for 15 years. Rounded to the nearest dollar, determine the balance in the Instalment Note Payable account on January 1, 2021, after making the first two annual payments.
a. $189,613.
b. $206,466.
c. $199.194.
d. $216,046.
Solved
Show answers
More tips
- C Computers and Internet Make Easy Accessible Screenshots on iPad in Just a Few Minutes...
- H Health and Medicine Heartburn: Causes and Ways to Get Rid of It...
- H Health and Medicine Simple and Effective: How to Get Rid of Cracked Heels...
- H Health and Medicine Relieving Swelling in Legs: Causes and Ways to Alleviate the Symptom...
- W Work and Career Мерчендайзинг – все, что нужно знать...
- O Other Everything You Need to Know About Kudyabliks...
- F Food and Cooking How to cook crayfish? Everything you need to know...
- F Food and Cooking Homemade kvass: recipe and brewing process...
- H Health and Medicine How to Choose the Right Tanning Cream?...
- S Style and Beauty Secrets of Tying a Pareo: 5 Ways...
Answers on questions: Business
- S Social Studies What type of transportation systems do the cranes transfer the imports from the ships to? A.Boats and trains B.Boats and trucks C.Trains and planes D.Trains and trucks...
- B Business The hydro index is a price weighted stock index based on the 5 largest boat manufacturers in the nation. the stock prices for the five stocks are $10, $20, $80, $50 and $40. the...
- E English What are Miss Thomas and Mr. Calloway arguing about before Bud gets to the breakfast table? A. What they are going to do for the day. B. What to eat for breakfast. C. Bud working...
- M Mathematics Ineed plz! a grocer pays $7.00 for each carton of 14 cantaloupes. which inequality describes p, the set of prices, in dollars, that he can charge for each cantaloupe to make more...
- C Chemistry What happens to a magnetic field if the current carrying wire a has three times as many loops but the same current as the current carrying wire b? wire a will have a lower magnetic...
Ответ:
The correct option is b. $206,466.
Explanation:
Interest expense on December 31, 2019 = Note payable on January 1, 2019 * Interest rate = $225,000 * 7% = $15,750
Principal paid on December 31, 2019 = Annual fixed installment - Interest expense on December 31, 2019 = $24,704 - $15,750 = $8,954
Note Payable balance on January 1, 2020 = Note payable on January 1, 2019 - Principal paid on December 31, 2019 = $225,000 - $8,954 = $216,046
Interest expense on December 31, 2020 = Note payable on January 1, 2020 * Interest rate =$216,046 * 7% = $15,123
Principal paid on December 31, 2020 = Annual fixed installment - Interest expense on December 31, 2020 = $24,704 - $15,123 = $9,581
Note Payable balance on January 1, 2021 = Note payable balance on January 1, 2020 - Principal paid on December 31, 2020 = $216,046 - $9,581 = 206,465
From the options in the question, the closest one to the Note Payable balance on January 1, 2021 calculated above is b. $206,466. Therefore, the correct option is b. $206,466.
Ответ:
Explanation:
a. A bank wishes to collect data on the number of customer services and the frequency of customer use of these services