Scotiabank approved a $230,000.00 line of credit for Buhler Industries at prime + 1%. It requires only the repayment of accrued interest on the 24th of each month, which is automatically deducted from the checking account of Buhler Industries. Buhler took out an advance on December 2 for $195,000.00 and made a payment of $120,000.00 on January 13. The prime rate was 6.5% initially and increased to 7.5% on January 2. Complete the repayment schedule below by filling in the payment and principal amounts. Payment Date Balance Annual before Interest Transaction Rate Number of Days Interest Charged Interest Accrued (+) or Advance Principal Amount Balance after Transaction (-) Dec 2 $195,000.00 Dec 24 $195,000.00 7.5% 22/365 $881.51 $881.51 $195,000.00 Jan 2 $195,000.00 7.5% 9/365 $360.62 $360.62 $195,000.00 Jan 13 $195,000.00 8.5% 11/365 $499.52 $860.14 $75,000.00 Jan 24 $75,000.00 8.5% 11/365 $192.12 $1,052.26 $75,000.00
Scotiabank approved a $230,000.00 line of credit for Buhler Industries at prime + 1%. It requires only the repayment of accrued interest on the 24th of each month, which is automatically deducted from the checking account of Buhler Industries. Buhler took out an advance on December 2 for $195,000.00 and made a payment of $120,000.00 on January 13. The prime rate was 6.5% initially and increased to 7.5% on January 2. Complete the repayment schedule below by filling in the payment and principal amounts. Payment Date Balance Annual before Interest Transaction Rate Number of Days Interest Charged Interest Accrued (+) or Advance Principal Amount Balance after Transaction (-) Dec 2 $195,000.00 Dec 24 $195,000.00 7.5% 22/365 $881.51 $881.51 $195,000.00 Jan 2 $195,000.00 7.5% 9/365 $360.62 $360.62 $195,000.00 Jan 13 $195,000.00 8.5% 11/365 $499.52 $860.14 $75,000.00 Jan 24 $75,000.00 8.5% 11/365 $192.12 $1,052.26 $75,000.00
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 11E
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