Computing overall liability for loan amounts


1) Would you believe Woodside a people oriented or task oriented leader? Few personal traits of leaders are role models explain why?

2) On November 1, Year 1, Placid Co. borrowed= $100,000 from Bay bamk and signed 12% six-month note payable, all due at maturity. Interest on this loan is stated seperately.

How much should Placid pay Bay Bank on May 1, year 2, when note matures?

How much interest expense will Placid identify on this note in year 2?

Compute Placid Co.'s overall liability for this loan amounts at December 31, Year 1?

At December 31, Year 1, the adjusting entry with respect to this note includes a

a) Credit to cash for $4,000
b) Credit to notes payable for $2,000
c) Credit to interest payable for $2,000
d) Debit to interest expense for $4,000

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Finance Basics: Computing overall liability for loan amounts
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