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Allen Corp.'s liability account balances at June 30, 2007 included a 10% note payable in the amount of $2,400,000. The note is dated October 1, 2005 and is payable in three equal annual payments of $800,000 plus interest. The first interest and principal payment was made on October 1, 2006. In...
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The note payable was originated in 2004, is due in four years, and carries simple interest at 7%annually. Interest for each year is paid annually on January 4 of the following year. The payment on January 4, 2007 was properly recorded, but no other entry regarding interest has been made in 2007. ...
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On August 31, Pell Co. partially refunded $180,000 of its outstanding 10% note payable made one year ago to National Bank by paying $180,000 plus $18,000 interest, having obtained the $198,000 by using $52,400 cash and signing a new one-year $160,000 not discounted at 9% by the bank. a) Make the...
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