On July 31, 2018, Virginia State Bank loaned $175,000 to Swanson Paint, Inc., on a one-year, 7

Question:

On July 31, 2018, Virginia State Bank loaned $175,000 to Swanson Paint, Inc., on a one-year, 7 percent note.

Requirements

1. Compute the interest on the note for the years ended December 31, 2018, and December 31, 2019. 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 Swanson Paint, Inc., pay the bank if it pays off the note early on January 31, 2019?

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Related Book For answer-question

Financial Accounting

ISBN: 978-0134727790

5th edition

Authors: Robert Kemp, Jeffrey Waybright

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Question Posted: Dec 19, 2019 07:10 AM

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On July 31, 2018, Virginia State Bank loaned $175,000 to Swanson Paint, Inc., on a one-year, 7

Question:

Step by Step Answer:

Req 1 Interest for 2018 175000 x 07 x 512 5104 2019 175000 x 07 x 71...View the full answer

Financial Accounting

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