Examlex

Solved

On September 1, 2017, Ensign Inc

question 85

Essay

On September 1, 2017, 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. Analyze the impact of the journal entry needed to record the issuance of the note.
2. Analyze the impact of the journal entry needed at December 31, 2017, to accrue interest.
3. Analyze the impact of the journal entry to record the payment of the note on September 1, 2018.
4. What effective rate of interest did Ensign pay?


Definitions:

Hiring

The process of reviewing applications, interviewing candidates, and selecting an individual for employment.

Promotion

The advancement of an employee to a higher job position or rank within the organization, often accompanied by increased responsibilities and salary.

Norm of Reciprocity

A social rule suggesting that people should repay, in kind, what another person has provided for them; this is the basis for the exchange of goods, services, and acts of kindness.

Perceived Support

The extent to which individuals believe that their social network provides love, care, esteem, and assistance.

Related Questions