Now d 31 2016 and 2017 on the Gerry Produce note for 2016 In

Now d 31, 2016 and 2017, on the Gerry Produce note for 2016: Interest for 2017: Requirement 2. Which party has Requirement 3. How much in total would GerryProduce, Inc., pay the bank if it pays off the note early on November 30, 20167

Solution

ans 1 For 2016 Principal Rate of Interest No. of months Interest Amt $1,000,000 9% 8/12 $60,000 2017 $1,000,000 9%    4/12 $30,000 Total $90,000 ans 2 a) Notes receivable Statewide Bank b) A note payable Gerry Products Inc c) Interest revenue Statewide Bank d) Interest expenses Gerry Products Inc ans 3 Principal 1000000 Interest 1000000*9%*7/12 52500 Total amt paid 1052500 If any doubt please comment. If satisfiied you can rate