Response to the following problem:
On April 30, 20X7, First National Bank of Santa Fc, New Mexico loaned $100,000 to Grant Thompson on a one-year, 9% note.
Required:
1. Compute the interest for the years ended December 31, 20X7 and 20X8 for the Thompson note.
2. Which party has a
a. Note receivable? c. Interest revenue?
b. Note payable? d. Interest expense?
3. How much in total would Thompson pay the bank if he pays off the note early-say, on November 30, 20X7?