Union Corporation borrowed $60,000 from the bank on November 1, 2016. The note had a 6percent annual

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Union Corporation borrowed $60,000 from the bank on November 1, 2016. The note had a 6 percent annual rate of interest and matured on April 30, 2017. Interest and principal were paid in cash on the maturity date.
Required
a. What amount of cash did Union pay for interest in 2016?
b. What amount of interest expense was reported 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 April 30, 2017, for principal and interest?
e. What amount of interest expense was reported on the 2017 income statement?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Related Book For  book-img-for-question

Fundamental Financial Accounting Concepts

ISBN: 978-0078025907

9th edition

Authors: Thomas Edmonds, Christopher Edmonds

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