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On September 1, 2015, Ensign Inc

question 186

Essay

On September 1, 2015, Ensign Inc. borrowed $21,000 from Emerald City National Bank by issuing a 12-month note. The bank discounted the note at 7.5%.
REQUIRED:
1. Identify the accounting equation effects to record the issuance of the note.
2. Identify the accounting equation effects needed at December 31, 2015, to accrue interest.
3. Identify the accounting equation effects to record the payment of the note on September 1, 2016.
4. What effective rate of interest did Ensign pay?


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Referring to the position of the elbow when it is bent, decreasing the angle between the forearm and upper arm.

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A unit of measurement for angles, with one degree being 1/360th of a circle.

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