On April 30, 2016, Seattle First National Bank loaned $100,000 to Pugliese Produce, Inc., on a one-year,

Question:

On April 30, 2016, Seattle First National Bank loaned $100,000 to Pugliese Produce, Inc., on a one-year, 8 percent note.

Requirements

1. Compute the interest for the years ended December 31, 2016 and 2017, on the note. Round interest calculations to the nearest dollar.

2. Which party has:

a. a note receivable?

b. a note payable?

c. interest revenue?

d. interest expense?

3. How much in total would Pugliese Produce, Inc., pay the bank if it pays off the note early on January 31, 2017?

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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0134436111

4th edition

Authors: Robert Kemp, Jeffrey Waybright

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