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

Question:

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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Financial Accounting

ISBN: 978-0133052152

2nd edition

Authors: Robert Kemp, Jeffrey Waybright

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Question Posted: Apr 29, 2014 02:51 AM

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

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Req 1 Interest for 2012 1250000 x 05 x ...View the full answer

Financial Accounting

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