Life.com issued $10 million of commercial paper on April 1 on a nine-month note. Interest was discounted
Question:
Life.com issued $10 million of commercial paper on April 1 on a nine-month note. Interest was discounted at issuance at a 6% discount rate. What is the effective interest rate on the commercial paper?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 70% (10 reviews)
Cash difference 9550000 Discount on notes payable 100000...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Question Posted:
Students also viewed these Accounting questions
-
What is the effective interest rate of a simple discount note for $30,800, at an ordinary bank discount rate of 14%, for 20 days? Round to the nearest tenth of a percent.
-
What is the effective interest rate of 10 percent compounded quarterly, versus 10 percent compounded monthly?
-
What is the effective interest rate on a $750,000 loan at 8% for 120 days if a 20% minimum compensating balance is required?
-
What type of insurance policy insures against all risks of loss that are not specifically excluded by the policy? OA) Binder policy OB) Named peril policy OC) Specified peril policy OD) Open peril...
-
In each case, show how you would synthesize the chloride, bromide, and iodide from the corresponding alcohol. (a) 1-halobutane (halo = chloro, bromo, iodo) (b) halocyclopentane (c)...
-
Explain how to maintain an information system for pine valley furniture s webstore.?
-
Consider the multiple regression model fit to the gasoline mileage data in Problem 3.5. Problem 3.5 Consider the gasoline mileage data in Table B.3. a. Construct a normal probability plot of the...
-
How should governments report capital projects and debt service activities in their government wide statements?
-
What approaches do adaptive leaders employ to promote organizational agility and responsiveness, fostering a culture of experimentation and iterative improvement ?
-
Elevators generally break down at random times and for different reasons. Elevator maintenance contractors must have trained service personnel to provide routine and emergency service. Shan On...
-
Branch Corporation issued $12 million of commercial paper on March 1 on a nine-month note. Interest was discounted at issuance at a 9% discount rate. Prepare the journal entry for the issuance of the...
-
On December 12, 2011, Pace Electronics received $24,000 from a customer toward a cash sale of $240,000 of diodes to be completed on January 16, 2012. What journal entries should Pace record on...
-
A drug manufacturer forms tablets by compressing a granular material that contains the active ingredient and various fillers. The hardness of a sample from each batch of tablets produced is measured...
-
Using the formula, "total assets / total assets, or sum of percentages", calculate the total assets of table below, total assets is $545 Common Size Balance Sheets Assets 20XX 20XY Cash and cash...
-
Shane's Computers decides to invest in North Country Enterprises on January 2, 2018. The market rate of interest was 2% on January 2, 2018, so the $80,000 maturity value bonds will be sold for face...
-
How can the principles of process safety engineering be integrated into the design and operation of chemical plants to mitigate the risks associated with hazardous materials, reactive chemistries,...
-
How do the properties of complex fluids such as colloidal dispersions, polymer solutions, and emulsions influence their behavior in industrial processes such as food processing, pharmaceutical...
-
Omega Co. has annual sales of $250,000, costs of goods sold of $168,000, and assets of $335,000. Accounts receivable are $82,600. What is the receivables turnover?
-
Record the following transactions in the petty cash book: On January 1, 2010 petty cash clerk was provided with an imprest amount of 1,000 and he/she incurred the following expenses during the month:
-
Do animals have rights? If so, what are they? What duties do human beings have toward animals? Does KFC protect animal welfare at an acceptable level?
-
Suppose a random sample of 25 people at a local weight-loss center is taken and the mean weight loss is found to be 12 lb. From past history, the standard deviation is known to be 3 lb. Test the...
-
Purchases Recorded Net Presented below are transactions related to Guillen, Inc. May 10 Purchased goods billed at $20,000 subject to cash discount terms of 2/10, n/60 11 Purchased goods billed at...
-
Purchases Recorded, Gross Method Wizard Industries purchased $12,000 of merchandise on February 1, 2010, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $3,000...
-
Periodic versus Perpetual Entries Chippewas Company sells one product. Presented below is information for January for Chippewas Company. Jan. 1 Inventory 100 units at $6 each 4 Sale 80 units at $8...
-
Create a class named Account that contains: A private int data field named id for the account (default 0). A private double data field named balance for the account (default 0). A private double data...
-
The next Java code needs to be converted from static to dynamic (just addd changes in same code): import java.util.Scanner; class MyIntStaticCircularQueue { int capacity = 2; int queue[] = new...
-
Hi! Would a tutor be able to assist me on this? In a complete graph with 48 vertices, how many vertices will be in each node's adjacency list? How many entries will be in the adjacency matrix for...
Study smarter with the SolutionInn App