Ask Question
BusinessBusiness
25 November, 06:41

Universal Travel Inc. borrowed $500,000 on November 1, 2021, and signed a 12-month note bearing interest at 6%. Interest is payable in full at maturity on October 31, 2022. In connection with this note, Universal Travel Inc. should report interest payable at December 31, 2021, in the amount of: (Round your final answers to the nearest whole dollar.

+5
Answers (1)
  1. 25 November, 08:50
    0
    Answer: $5,000

    Explanation:

    Since 6% interest is to be paid on the borrowed amount of $500,000.

    Therefore,

    Total interest payable on $500000 is:

    $500000 * (60/100) = $30,000

    Then, the payable interest for

    One month is:

    $30,000 : 12 = $2,500

    Since the period between November 1, 2021 and December 31, 2021 is two (2) month intervals.

    Then, 2 month interest is to be reported by Universal Travel Inc.

    Therefore,

    $2,500 * 2 = $5,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Universal Travel Inc. borrowed $500,000 on November 1, 2021, and signed a 12-month note bearing interest at 6%. Interest is payable in full ...” 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.
Search for Other Answers
You Might be Interested in
Bill Baher, a private investor, purchased a futures contract on Treasury bonds at a price of 102-12. Two months later, Baher sells the same futures contract in order to close out the position. At that time, the futures contract specifies 103-15.
Answers (1)
In your own words define motivation.
Answers (1)
What is the annual compounded interest rate of an investment with a stated interest rate of 6% compounded quarterly for seven years (round to the nearest .1%) ?
Answers (1)
Local governments tend to be fall into one of two divisions: general-purpose governments and special purpose governments. general-purpose governments provide services in many areas.
Answers (1)
Your most senior employee is not willing to change how she does her job because she is satisfied with the current approach she uses. To get her to change, you need to focus on Lewin's stage of planned change.
Answers (1)
New Questions in Business
When the consumer price index rises, the typical family a. has to spend more dollars to maintain the same standard of living. b. can spend fewer dollars to maintain the same standard of living. c. finds that its standard of living is not affected. d.
Answers (1)
A magazine subscription costs $45 per year at the beginning of each year, or $115 now for a three-year subscription. If the subscriber elects to pay the $115 now, the rate of return on the investment will be nearest to:
Answers (2)
The second step in rational decision making is to: choose the solution that maximizes value. identify the criteria that are important in making the decision. evaluate the alternatives. implement the alternative.
Answers (1)
What impact will a spike in wages cause to the labor demand curve?
Answers (1)
A company issued 8%, 15-year bonds with a par value of $500,000 that pay interest semiannually. The market rate on the date of issuance was 8%.
Answers (1)
Home » Business » Universal Travel Inc. borrowed $500,000 on November 1, 2021, and signed a 12-month note bearing interest at 6%. Interest is payable in full at maturity on October 31, 2022. In connection with this note, Universal Travel Inc.
Sign Up Forgot Password?