Question: On July 31 2012 Nature Bank loaned 1 250 000 to Gill

On July 31, 2012, Nature Bank loaned $1,250,000 to Gill Harrison on a one-year, 5% note.

Requirements
1. Compute the interest for the years ended December 31, 2012 and 2013, on the Harrison note.
2. Which party has
a. a note receivable?
b. a note payable?
c. interest revenue?
d. interest expense?
3. How much in total would Harrison pay the bank if he pays off the note early on January 31, 2013?


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  • CreatedApril 29, 2014
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