On January 1st, 2015 "ABC" Company borrowed certain amount from a local bank for 10...
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On January 1st, 2015 "ABC" Company borrowed certain amount from a local bank for 10 years. According to the loan's terms, the company is obligated to pay an amount equal to $29307 every January 1st, May 1st, and September 1st. The following table represents a loan amortization table that had been prepared for May 1st, and September 1st, 2015 payments: Date Payment Interest Reduction Balance 01/01/2015 $0 $0 $0 $???? 01/05/2015 $29,307.00 $16,000.00 $7722 $586,693.00 01/09/2015 $29,307.00 $???? $13,661.85 $7272 Instructions Based on the above information answer the following questions: What is the amount that had been borrowed from the bank on January 1st, 2015? What is the annual interest rate that had been charged by the bank? (Note: Write your answer as a decimal For example use 0.07 and Not 7%) What is the amount that must be recorded as an interest expense for the year 2015? What is the loans balance as 31/12/20152 Whor is the loon's balance as 31/12/2015 that must be presented as a non-current liability as on 31/12/20152
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