httpsnewconnect mheducationcomTlowconnect htm Adjusting Entr

https:/newconnect mheducation.com/Tlow/connect htm Adjusting Entries Help Save&Ealt; Check m The Eldorado Corporation\'s controller prepares adjusting entries only at the end of the fiscal year. The following adjunting entries were prepared on December 31, 2018: 7,200 Rent expense Prepaid rent 18.000 Additional information: 1 The company borrowed $120,000 on March 31, 2018. Principal and interest are due on March 31, 2019. This note is the company\'s only interest-bearing debt 2. Rent for the year on the company\'s office space is $27000. The rent is paid in advance. 3 On October 31, 2018, Eldorado lent money to a customer. The customer signed a note with principal and year Required: 1. What is the interest rate on the company\'s note payable? 2. The 3. How much did Eldorado lend its customer on October 31? 2018 rent payment was made at the beginning of which month? 9 4

Solution

1.

2.

3.

Interest rate = (($7,200/9*12)/$120,000)*100

Interest rate = 8%