Herrindale Mart borrows $420,000 on July 1 with a short-term loan that has an annual interest rate of 5% which is payable on the first day of each subsequent quarter. What will Herrindale Mart need to accrue on August 31, assuming that no accrual has yet been made

August 31, 202x (assuming a 360 day year)

Dr Interest expense 1,750

    Cr Interest payable 1,750

Explanation:

The journal entry to record the loan:

July 1 , 202x

Dr Cash 420,000

    Cr Notes payable 420,000

The journal entry to record accrued interest on the loan:

August 31, 202x (assuming a 360 day year)

Dr Interest expense 1,750

    Cr Interest payable 1,750

Interest expense = $420,000 x 5% x 2/12 = $1,750

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you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%