Your company obtains a short term loan on September 1st, 2019 to cover costs to purchase inventory. The loan is for $50,000, the annual interest rate is 8%. The loan is for 7 months and matures on March 31st, 2020. The journal entry on September 1st, 2019 is a Debit to and a Credit to Assuming a December 31 fiscal year end, the journal entry your company does on December 31, 2019 to accrue interest is a Debit and a Credit How much interest expense does your company record on March 31st, 2020 when the loan matures? How much total cash will your company pay back on March 31st, 2020?
+4
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Your company obtains a short term loan on September 1st, 2019 to cover costs to purchase inventory. The loan is for $50,000, the annual ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Home » Business » Your company obtains a short term loan on September 1st, 2019 to cover costs to purchase inventory. The loan is for $50,000, the annual interest rate is 8%. The loan is for 7 months and matures on March 31st, 2020.