Question :
The Eldorado Corporation's controller prepares adjusting entries only at the end of the fiscal year. The subsequent adjusting entries were prepared on Dec 31, 2013:
Debit Credit
Interest expense 7200
Interest payable 7200
Rent expense 35,000
prepaid rent 35,000
Interest receivable 500
Interest revenue 500
Additional Information:
1. The company borrowed $120,000 on Mar 31, 13. Principal and Interest are due on Mar 31, 14. This note is the company's only interest bearing debt.
2. Rent for the year on the company's office space is $60,000. The rent is paid in advance.
3. On 31st Oct, 13, Eldorado loan money to a customer. The customer signed a note with interest and principal at 6% due in one year.
Required:
Evaluate the subsequent:
1. Evaluate the interest rate on the company's note payable?
2. The 2013 rent payment was made at the starting of which month?
3. How much did Eldorado lend its customer on Oct 31?