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Acompany has a $500,000 30-year fixed loan payable at an interest rate of...

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Accounting

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Acompany has a $500,000 30-year fixed loan payable at an interest rate of 4%. Monthly loan payments are set at $2.387.08. For the first month's payment, the interest free of the payment is $1.666,67. The entry to record the first month's loan payment (assuming no previous accrual) would include a credit to Interest Expense in the amount of $1,666.67. Cash in the amount of $1,666.67. Loan Payable in the amount of $2,387.08. Cash in the amount of $2,387.08. 167 points The current ratio (current assets/current liabilities) is important because it tells us about the likelihood that a company will default on loan payments in future years. the amount of cash available to spend in the current period. OOOO a company's long-term solvency. a company's ability to meet its short-term obligations

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