Assume that on October 1, 2010, Big Company borrowed $10,000 from the local bank at 6 percent

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Assume that on October 1, 2010, Big Company borrowed $10,000 from the local bank at 6 percent interest. The note is due on October 1, 2011. How much interest does Big pay in 2010? How much interest does Big pay in 2011? What amount of cash does Big pay back in 2011?

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Survey of Accounting

ISBN: 978-0073379555

2nd edition

Authors: Edmonds, old, Mcnair, Tsay

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