A re-payment of £15,000 has been posted to XYZ’s loan account, whereas £3,000 of this amount...

A re-payment of £15,000 has been posted to XYZ’s loan account, whereas £3,000 of this amount was paid as interest on the loan. To correct this error the journal entry would require:

	1.	Debit Jerry Blakes loan a/c and credit Interest on loan account with £3,000
	2.	Debit Interest on loan account and credit Jerry Blakes Loan a/c with £3,000
	3.	Debit Cash account and credit Jerry Blakes Loan a/c with £3,000
	4.	Debit Interest on loan account and credit Jerry Blakes loan a/c with £15,000

Expert Solution

Correct journal entry:

2. Debit Interest on loan account and credit Jerry Blakes Loan a/c with £3,000

Reason:

Here Interest is expenditure is paid is wrongly debited to Loan a/c therefore to correct this debit Interest on loan as it is in the nature of expenditure and we have to increase the loan amount by £3,000 so credit Jerry Blakes Loan a/c with £3,000

ekkarill92 answered 2 years ago

A $26,000 loan borrowed 5 years ago, has been scheduled for re-pay starting today. The payment...

A $26,000 loan borrowed 5 years ago, has been scheduled for re-pay starting today. The payment schedule is equal monthly payments made at the end of every month for the next 10 years. Find the size of the payments if interest is 3.6% p.a. compounding monthly.

A sale to XYZ for £21,400 has been posted to the customer's account as £24,100. The...

A sale to XYZ for £21,400 has been posted to the customer's account as £24,100. The trial balance failed to balance but the difference has not been placed in a Suspense account. The journal entry to correct this error would require which of the following: 1. Debit Suspense account and credit Roy Roger's account with £2,700 2. Debit Sales account and credit Roy Roger's account with £2,700 3. Credit Roy Roger's account with £2,700 (with no corresponding second entry) 4....

Using the ENGR 315 Automobile Loan Payment Calculator posted, calculate the monthly payment required for a...

Using the ENGR 315 Automobile Loan Payment Calculator posted, calculate the monthly payment required for a 60-month new automobile loan made by the lender at 4.74% annual percentage rate (APR) if the car buyer borrowed $35,742. Save the resulting Excel spreadsheet file, as a PDF, presenting your payment calculations

A small amount of goods are not sold on account. Where are these sales posted? A....

A small amount of goods are not sold on account. Where are these sales posted? A. purchases journal B. sales journal C. cash disbursement journal D. cash receipts journal

[SHORT] In Excel: Amount of the loan: $500,000 Length of the loan: 30 years Payment: Equal...

[SHORT] In Excel: Amount of the loan: $500,000 Length of the loan: 30 years Payment: Equal annual payment Interest rate: Annual interest rate is 3.0% in year 1, and increases at 0.1% increment every year after that. So Year 2's rate will be 3.1%, Year 3's rate will be 3.2%, etc. Create a year-by-year table with Year, Beginning balance, PMT, interest, principal, and ending balance. Make sure to create a column to reflect floating interest rates. Make sure to utilize...

Goal-seek Loan Amortization Schedule Amount of the loan: $500,000 Length of the loan: 30 years Payment:...

Goal-seek Loan Amortization Schedule Amount of the loan: $500,000 Length of the loan: 30 years Payment: Equal annual payment Interest rate: Annual interest rate is 3.0% in year 1, and increases 0.1% in year 2, etc. In other words, the annual interest rates will be 3.0%, 3.1%, 3.2%,…. M1 Assignment - Goal-seek Loan Amortization Schedule Rubric Successfully created year-by-year table with Year, Beginning balance, PMT, interest, principal, ending balance 3 pts Successfully created a column to reflect floating interest rates...

Recently you borrowed money for a new car. The loan amount is $15,000 to be paid...

Recently you borrowed money for a new car. The loan amount is $15,000 to be paid back in equal annual payments which begin today, and will continue to be payable at the beginning of each year for a total of five years. Interest on the loan is 8%. What is the amount of the loan payment? a $4,193.34 b $4528.81 c $3,478.31 d $4,891.12

If the interest rate on the loan is 7%, what is the amount of principal in the second payment?

You borrow $12,000 today. The loan will be repaid in annual payments over 10 years. If the interest rate on the loan is 7%, what is the amount of principal in the second payment?

2. A What is the monthly payment amount on a $100,000 home loan if the rate...

2. A What is the monthly payment amount on a $100,000 home loan if the rate is 8.0% APR, and the loan is made for a 15-year period? B A four-year investment requires annual deposits of $300 at the beginning of each year. The deposits earn 6% per year. What is the investment’s future value? Remember, the deposits are made at the beginning of each year (annuity due).

Loan Amortization Schedule, $80,000,000 at 8% for 15 years Year Beginning Amount Payment Interest Payment of...

Loan Amortization Schedule, $80,000,000 at 8% for 15 years Year Beginning Amount Payment Interest Payment of Principal Ending Balance 1 $ 80,000,000.00 $ 1,933.28 $ 533,333.33 $ (531,400.05) $ 80,531,400.05 2 $ 80,531,400.05 $ 1,933.28 $ 536,876.00 $ (534,942.72) $ 81,066,342.77 3 $ 81,066,342.77 $ 1,933.28 $ 540,442.29 $ (538,509.01) $ 81,604,851.78 4 $ 81,604,851.78 $ 1,933.28 $ 544,032.35 $ (542,099.07) $ 82,146,950.84 179 $ 260,404,969.06 $ 1,933.28 $ 1,736,033.13 $ (1,734,099.85) $ 262,139,068.91 180 $ 262,139,068.91 $ 1,933.28 $ ...

Question