Question: Abardeen Corporation borrowed $90,000 from the bank on October 1, 2016. The note had an 8percent annual rate of interest and matured on March 31,

Abardeen borrowed $90,000 from the bank on October 1, 2016. The note had an 8 percent annual rate of interest and matured on March 31, 2017. Interest and principal were paid in cash on the date.
Required
a. What amount of cash did Abardeen pay for interest in 2016?
b. What amount of interest expense was recognized on the 2016 income statement?
c. What amount of total liabilities was reported on the December 31, 2016, balance sheet?
d. What total amount of cash was paid to the bank on March 31, 2017, for principal and interest?
e. What amount of interest expense was reported on the 2017 income statement?

Step by Step Solution

★★★★★

3.44 Rating (183 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a 0 No interest was paid in 2016 Interest will be paid ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

443-B-A-L (4962).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Abardeen Corporation borrowed $97,000 from the bank on October 1, 2016. The note had an 6 percent annual rate of interest and matured on March 31, 2017. Interest and principal were paid in cash on...

Abardeen Corporation borrowed $90,000 from the bank on October 1, 2018. The note had an 8 percent annual rate of interest and matured on March 31, 2019. Interest and principal were paid in cash on...

Abardeen Corporation borrowed $90,000 from the bank on October 1, Year 1. The note had an 8 percent annual rate of interest and matured on March 31, Year 2. Interest and principal were paid in cash...

please help ne solve this Abardeen Corporation borrowed $116,000 from the bank on October 1 , Year 1 . The note had an 8 percent ant matured on March 31, Year 2. Interest and principal were paid in...

Abardeen Corporation borrowed $90,000 from the bank on October1, Year 1. The note had an 8 percent annual rate of interest andmatured on March 31, Year 2. Interest and principal were paid incash on 2...

Abardeen Corporation borrowed $100,000 from the bank on October1, Year 1. The note had an 8 percent annual rate of interest andmatured on March 31, Year 2. Interest and principal were paid incash o 2...

Abardeen Corporation borrowed $90,000 from the bank on October 1, 2018. The note had an 4 percent annual rate of interest and matured on March 31, 2019. Interest and principal were paid in cash on...

Abardeen Corporation borrowed $69,000 from the bank on October 1, 2016. The note had an 8 percent annual rate of interest and matured on March 31, 2017. Interest and principal were paid in cash on...

1. 2. (2) 2. (3) 3. 4. In September of 2016, Hansen Company issued a note payable to borrow money from its bank. Principal and interest on the note would come due in June 2017. Interest expense on...

Abardeen Corporation borrowed $97,000 from the bank on October 1, 2016. The note had an 6 percent annual rate of interest and matured on March 31, 2017. Interest and principal were paid in cash on...

Troy has a 7/23 balloon mortgage on his $260,000 home. He has been making payments of $1323 each month and will have a balloon payment due for the amount of $198,569. If he decides to make the...

Bill, a white male, is charged with spousal abuse. His attorney uses his peremptory challenges to remove all white females from the jury. The prosecution objects. Was there any impropriety in the...

8. Which of the following are harmed by unexpectedly high rates of inflation? I. Borrowers repaying a long-term loan at a fixed interest rate. II. Savers who have put their money in longterm assets...

You work for a government subcontractor and have prepared a valuation analysis of two projects for the executive sponsor, General Robert Garth. Because there are insufficient resources (people and...

Yilan Company is considering adding a new product. The cost accountant has provided the following data. Expected variable cost of manufacturing ........ $57 per unit Expected annual fixed...

Rosenthal Company makes and sells products with variable costs of $24 each. Rosenthal incurs annual fixed costs of $315,000. The current sales price is $87. Required The following requirements are...

Mayer Corporation sells hammocks; variable costs are $75 each, and the hammocks are sold for $125 each. Mayer incurs $240,000 of fixed operating expenses annually. Required a. Determine the sales...

Sunland Company makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are...

zivo 3G JAWWAL II. Aitc.birzeit.edu Anabtawi Company uses the periodic inventory method and had the following inventory information available: ( 8 points) Date Explanation Number Unit Total of Units...

Cooper Company has a direct materials standard of 2 gallons of input at a cost of $10.50 per gallon. During July, Cooper Company purchased and used 6.780 qalions, paying $46.600 The direct materials...