Wages and salaries Rent income Additional information: (extract) "The long-term mortgage loan was initiated on 01 November 2006. Interest on the loan is debited to the current account, and R40 000 was redeemed (paid back) on the loan on 01 September 2007." 78340 22750 As per the "Study and Solutions Guide" the entry for Accrued Expenses (Mortgage loan) is R4117 I am struggling to find the formula on how they got to that amount. If you can please assist me I would really appreciate it as I am a bit frustrated now.

Wages and salaries Rent income Additional information: (extract) "The long-term mortgage loan was initiated on 01 November 2006. Interest on the loan is debited to the current account, and R40 000 was redeemed (paid back) on the loan on 01 September 2007." 78340 22750 As per the "Study and Solutions Guide" the entry for Accrued Expenses (Mortgage loan) is R4117 I am struggling to find the formula on how they got to that amount. If you can please assist me I would really appreciate it as I am a bit frustrated now.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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3. A loan of $500 at 7% annual interest rate. The loan was made on March 15 and due on Мay15. Find the ordinary interest using: a) Ordinary time b) Exact time c) Find the Exact Interest using exact time a. I= 500 x 0.07/360 x 60 = $5.831 = 500(É b. I= 500 x 0.07/360 x 61 = $5.93 - c. I= 500 x 0.07/365 x 61 = $5.8
7.Compute the principal (in $) for the loan. Use ordinary interest when time is stated in days. Principal Rate (%) Time Interest $ 7 1 1 2 years $735
6. Determine the maturity date of the loan (not in a leap-year). Loan Date Time of Loan (days) Maturity Date February 8 110
Compute the principal (in $) for the loan. Use ordinary interest when time is stated in days. Principal Rate (%) $ +A 8 Time Interest 14/1/2 years $1,080
Use the amortization table to determine how much interest is paid in the first 4 months of the loan. Click the icon to view the amortization table. $ (Type an integer or a decimal.) Amortization Table Payment Number 0 1 2 3 4 5 6 7 8 9 10 11 12 Amortization Table Amount of Payment $215.17 $215.17 $215.17 $215.17 $215.17 $215.17 $215.17 $215.17 $215.17 $215.17 $215.17 $215.13 Print Interest for Period $12.50 $11.49 $10.47 $9.44 $8.42 $7.38 $6.34 $5.30 $4.25 $3.20 $2.14 $1.07 Portion to Principal $202.67 $203.68 $204.70 $205.73 $206.75 $207.79 $208.83 $209.87 $210.92 $211.97 $213.03 $214.06 Done Principal at End of Period $2500.00 $2297.33 $2093.65 $1888.95 $1683.22 $1476.47 $1268.68 $1059.85 $849.98 $639.06 $427.09 $214.06 $0.00
Given the annual interest rate and a line of an amortization schedule for that loan, complete the next line of the schedule. Assume that payments are made monthly. Annual Interest Paid on Interest Rate Payment Paid Principal Balance 11.6% $425.57 $64.23 $361.34 $6,280.78 Fill out the amortization schedule below. Annual Interest Paid on Payment Balance Interest Rate Paid Principal 11.6% $425.57 $64.23 $361.34 $6,280.78 (Round to the nearest cent as needed.)
Given the annual interest rate and a line of an amortization schedule for that loan, complete the next line of the schedule. Assume that payments are made monthly. Paid on Interest Paid Annual Interest Rate Payment $175.92 Balance Principal $159.58 6.9% $16.34 $2,681.75 Fill out the amortization schedule below. Annual Interest Rate Paid on Principal $159.58 Interest Payment Balance Paid 6.9% $175.92 $16.34 $2,681.75 (Round to the nearest cent as needed.)
Requirement 1a. In preparation for recording the transactions, prepare: An amortization schedule for the first 3 months of the mortgage payable issued or October 1. Round interest calculations to the nearest dollar. Beginning Balance Principal Payment Interest Expense Total Ending Payment Balance 10/01/2018 11/1/2018 12/1/2018 $ 220,000 $ 220,000 $ 733 $ 2,017 $ 2,750 $ 2267 219,267 740 01/01/2019 218,527 747 2,010 2,003 2,750 218,527 2,750 217,780 Requirement 1b. In preparation for recording the transactions, prepare: Payroll registers for October, November, and December. All employees worked Oc through December 31 and are subject to the following FICA taxes: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% up to $200,000, 2.35% on earn above $200,000. Begin by preparing the payroll register for October. (Round all amounts to the nearest cent. Complete all answer boxes. Enter a "0" for any zero balances.
Apply the United States rule to determine the balance at maturity and the total interest paid ir the borrower makes two partial payments and the renainder of the loan is paid at maturity. Loan Length (Days) 280 Payment on Day Principal Interest Rate % Partial Payment $13,500 10.5 $5670.00 112 $3915.00 196
2. The following loan is paid in full before the date of maturity. Find the amount of unearned interest. Use the Rule of 78. Finance Charge: $422 Total Number of Payments: 30 Remaining Number of Payments When Paid in Full: 16
A partial amortization schedule for a 5-year note payable that Mabry Company issued on January 1, 2018, is shown as follows. accounting period principal balance cash payment app. to interest app to principal 2018 136000 34965 12240 22725 2019 113275 34965 10195 24770 2020 88505 34965 7965 27000 what is the amount of interest expense on the loan?
Determine the maturity date of the loan (not in a leap-year). Loan Date Time of Loan (days) Maturity Date February 8 110 June