On July 1, 2014, Rogers Corp took out a 60 day, $100,000 loan at the bank On July 31, 2014, Rogers made the following adjusting entry Required 1 What is the interest rate on the loan Explain your answer 2 Prepare the entry on Rogers Corp s books on August 31, 2014, when the company repays the princ...

1 The interest rate on the loan is the monthly interest of 500 12 months100000 6 2 En ...

On July 1, 2014, Rogers Corp. took out a 60-day, $100,000 loan at the bank. On July

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On July 1, 2014, Rogers Corp. took out a 60-day, $100,000 loan at the bank. On July 31, 2014, Rogers made the following adjusting entry:

Interest Expense Interest Payable To record interest for one month on a $100,000 loan. July 31 Journal Entry Analysis 50

Required
1. What is the interest rate on the loan? Explain your answer.
2. Prepare the entry on Rogers Corp.€™s books on August 31, 2014, when the company repays the principal and interest on the loan.

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Financial Accounting The Impact on Decision Makers

ISBN: 978-1285182964

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Authors: Gary A. Porter, Curtis L. Norton

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Question Posted: Aug 24, 2018 06:15 AM

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On July 1, 2014, Rogers Corp. took out a 60-day, $100,000 loan at the bank. On July

Question:

Interest Expense Interest Payable To record interest for one month on a $100,000 loan. July 31 Journal Entry Analysis 500 500 Balance Sheet Income Statement STOCKHOLDERS' NET = INCOME (500) LIABILITIES Interest Payable REVENUES ASSETS EQUITY (500) EXPENSES Interest Expense 500 500

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Financial Accounting The Impact on Decision Makers

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