Boyd Corporation borrows $300,000 from a bank on March 1, Year 1, by signing a 6 percent, nine-month note for the amount borrowed plus accrued interest due nine months later. On issuance date, this transaction:Multiple Choicedecreases assets and decreases liabilities.decreases assets and increases liabilities.increases assets and increases liabilities.increases assets and decreases liabilities.

A company borrows $75 000 from a bank, to be amortised over five years at 8.5% per annum. The annual instalment is:

On 1 September Carlson Ltd borrowed $10,000 from the bank for three months at the annual interest rate of 9%. Principal and interest are payable to the bank on 1 December. If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on 30 September, would be: Question 3 Answer 1. Increase Interest expense by $300 and increase Interest payable by $300 2. Increase Interest expense by $75 and increase Interest payable by $75 3. Increase Interest expense by $225 and increase Interest payable by $225 4. Increase Interest expense by $900 and increase Interest payable by $900

A company borrowed $15,000 by signing a 120-day promissory note at 10%. The total interest due on the maturity date is. (Use 360 days a year.)Multiple Choice$50.00$750.00$500.00$1,500.00$250.00

Caddell Corporation borrows $100,000 from a bank on August 1, Year 1, by signing an 8 percent, six-month note for the amount borrowed plus accrued interest due six months later on February 1, Year 2. Which of the following is recorded on August 1, Year 1?Multiple Choice$100,000 credit to Cash$100,000 credit to Notes Payable$104,000 debit to Cash$104,000 debit to Notes Payable

Windsor Corporation borrows $100,000 from a bank on November 1, Year 1, by signing a 9 percent, six-month note for the amount borrowed plus accrued interest due six months later on May 1, Year 2. What is the interest expense per month on this note?Multiple Choice$1,200$3,000$750$1,000