Negotiated A Revolving Credit Agreement With Parish Bank
kenty9x | September 28, 2021 | 0Please click on the link below to read the Cardholder Agreement for your account and any applicable change notices. It granted a bank loan of $2.0 million over three months with Parish Bank as part of the credit agreement. At maturity, interest had to be paid at the key rate of 13%. Backed by the line of credit, US$17.6 million of commercial paper was spent on a nine-month note. Interest was discounted on issue with a discount rate of 12%. At scotiabank, we strive to help you better understand the terms and conditions associated with your revolving credit products and any updates or changes we make to them. Negotiation of a revolving credit agreement with Parish Bank, which can be renewed annually after approval by the bank. The amount available under the line of credit is $25.0 million at the bank`s key rate. Scotiabank American Express and VISA credit cards and staff…. The transactions selected below relate to the commitments of United Insulation Corporation. United`s fiscal year ends on December 31. Prepare the corresponding entries until the expiry of each commitment:. Discount on note payable $675,000 ($10,000,000 x 9% x 9/12) Interest fee $125,000 ($5,000,000 x 10% x 3/12).
. Prepare the corresponding entries until the deadline of each commitment in 2016 and 2017. (If a transaction/event is not required, select “No log entry required” in the first account field. Do not round off intermediate calculations. Enter your answers in whole dollars.) . . . . Calculate the total interest due and also calculate the interest that was paid for the 31st The year ending December 31, 2014 must be paid. (Enter your answers in whole dollars.) .
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