Finance practice problems
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On September 30, 2009, Webster Co.'s treasurer signed a note promising to pay $520,000 on December 31, 2009. Proceeds of the note were $501,800.
(a.) Calculate the discount rate used by the lender.
(b.) Calculate the effective interest rate on the loan.
(c.) How much interest expense would be recorded for the month of October?
The Defiance College sells season tickets for four home football games at a price of $15. For the 2009 season, 5,000 season tickets were sold.
(a.) Explain how should Defiance account for the initial sale of the season tickets?
(b.) Explain what journal entry or affect on the horizontal model would be necessary to show the effect of hosting a home football game.
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Solution Summary
Response shows the computations along with commentary explaining the work.
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
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