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1. Accounting Help

Can someone help me out with these 3 problems? I have a few minutes left on this homework assignment.

OS Environmental provides cost effective solutions for managing regulatory requirements and environmental needs specific to the airlines industry. Assume that on July 1, 2010, the company issues a one-year note for the amount of \$1,000,000. Interest is payable at maturity.

11. Determine the amount of interest expense that should be recorded in a year-end adjusting entry assuming a 12% interest rate and a fiscal year-end September 30.

\$___________

12. Determine the amount of interest expense that should be recorded in a year-end adjusting entry assuming a 9% interest rate and a fiscal year-end October 31.

\$___________

13. Determine the amount of interest expense that should be recorded in a year-end adjusting entry assuming a 10% interest rate and a fiscal year-end December 31.

\$___________

2. Originally Posted by jumara3
can someone help me out with these 3 problems? I have a few minutes left on this homework assignment.

Os environmental provides cost effective solutions for managing regulatory requirements and environmental needs specific to the airlines industry. Assume that on july 1, 2010, the company issues a one-year note for the amount of \$1,000,000. Interest is payable at maturity.

11. Determine the amount of interest expense that should be recorded in a year-end adjusting entry assuming a 12% interest rate and a fiscal year-end september 30.

\$___________

12. Determine the amount of interest expense that should be recorded in a year-end adjusting entry assuming a 9% interest rate and a fiscal year-end october 31.

\$___________

13. Determine the amount of interest expense that should be recorded in a year-end adjusting entry assuming a 10% interest rate and a fiscal year-end december 31.

\$___________
11. 1,000,000 * 12% * 3/12
12.1,000,000 * 9% * 4/12
13.1,000,000 * 10% * 6/12

3. u sure?

4. working on em now give me 3 mins

11) 30,000

1mil * (3/12) .25 x .12 = 30,000

12) 29,700

1mil x (4/12) .33 x .09 = 29,700

13) 50,000

1mil x .50 x .10 = 50,000

edit: dude beat me to it

5. Originally Posted by PBM
11. 1,000,000 * 12% * 3/12
12.1,000,000 * 9% * 4/12
13.1,000,000 * 10% * 6/12
Looks good to me.

6. Originally Posted by Jumara3
u sure?
Yes because you accrued the interest at the year end so your entry for the company that is paying out the interest is

Dr.Interest Expense \$30,000
Cr. Interest Payable \$30,000

and the following year when you pay it out, it will be

Dr.Interest Expense \$90,000
Dr.Interest Payable \$30,000
Cr. Cash \$120,000

Didn't do the problems, but PBM's answer looks like it's right

8. ) Thanks

The four people below have the following investment:

Investment amount

Interest rate

Compounding
Jerry

\$12,000

12%

Quarterly
Elaine

15,000

8

Semi-annually
George

22,000

7

Annually
Kramer

18,000

9

Annually

33. 33. Which person will have the greatest investment accumulation in five years? __________
34.
34. How much did the person accumulate? (ROUND TO NEAREST DOLLAR) \$___________

9. On August 1, 2010, Trico Technologies, an aeronautic electronics company, borrows \$10,000,000 cash from FirstBanc Corp., to expand operations. Trico signs a six-month, 9% promissory note. Interest is payable at maturity. Trico’s year-end is December 31.

10. When the note is paid at maturity how much does net income decrease? \$___________

10. ahh 20 mins lft

11. Originally Posted by Jumara3
On August 1, 2010, Trico Technologies, an aeronautic electronics company, borrows \$10,000,000 cash from FirstBanc Corp., to expand operations. Trico signs a six-month, 9% promissory note. Interest is payable at maturity. Trico?s year-end is December 31.

10. When the note is paid at maturity how much does net income decrease? \$___________
Not sure if I understand this question.. is this exactly how the question is stated in the book?

12. yea

13. Originally Posted by Jumara3
) Thanks

The four people below have the following investment:

Investment amount

Interest rate

Compounding
Jerry

\$12,000

12%

Quarterly
Elaine

15,000

8

Semi-annually
George

22,000

7

Annually
Kramer

18,000

9

Annually

33. 33. Which person will have the greatest investment accumulation in five years? __________
34.
34. How much did the person accumulate? (ROUND TO NEAREST DOLLAR) \$___________
Jerry 21673.33

Elaine 22203.66

George 30856.14

Kramer 27695.23

*assuming each is compounded

edit: all correct

14. one more-

The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each person signs independent contracts with the following terms:

Contract amount

Payment Date
Derek

\$500,000

Two years
Isabel

540,000

Three years
Meredith

450,000

Today
George

400,000

One year

Assume an annual discount rate of 10% (compounding annually).

35. Which actor is being paid the most? ____________

36. What is the value of the contract amount today? \$___________

15. Originally Posted by Jumara3
On August 1, 2010, Trico Technologies, an aeronautic electronics company, borrows \$10,000,000 cash from FirstBanc Corp., to expand operations. Trico signs a six-month, 9% promissory note. Interest is payable at maturity. Trico?s year-end is December 31.

10. When the note is paid at maturity how much does net income decrease? \$___________
Originally Posted by Jumara3
yea
Okay well I don't see the significance in the year end since the maturity date would be Jan 1 2011. Interest on the note would be 900,000.

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