On June 30, 2013, Nature Bank loaned $2,000,000 to Gary Simon on a one-year, 7% note. Requirements

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On June 30, 2013, Nature Bank loaned $2,000,000 to Gary Simon on a one-year, 7% note.

Requirements

1. Compute the interest for the years ended December 31, 2013 and 2014, on the Simon 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 Simon pay the bank if he pays off the note early— say, on January 31, 2014?

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Financial Accounting

ISBN: 978-0132889711

1st Canadian Edition

Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper

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Question Posted: Jul 08, 2015 02:35 AM

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On June 30, 2013, Nature Bank loaned $2,000,000 to Gary Simon on a one-year, 7% note. Requirements

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Req 1 Interest for 2013 2000000 007 612 70000 2014 2000000 007 61...View the full answer

Financial Accounting

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