On March 1, 2014 Giant Jumbo Clown Costumes borrowed money from their bank Second Friendly National Bank by issuing a $125,000, 180 day, non interest bearing note. The note was discounted to 13.5%.
Compute the following:
1) How much money did Giant Jumbo receive?
2) What was the total amount of interest paid?
3) What is the effective 180 day interest rate on this note payable? (round to 4 decimals)
4) What is the approximate annual effective interest rate on this note payable?
5) Record the journal entries for the issuance of the note.

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The Answer of On March 1, 2014 Giant Jumbo Clown Costumes borrowed money from their bank Second Friendly National Bank by issuing a $125,000, 180 day, non interest bearing note. The note was discounted to 13.5%.
Compute the following:
1) How much money did Giant Jumbo receive?
2) What was the total amount of interest paid?
3) What is the effective 180 day interest rate on this note payable? (round to 4 decimals)
4) What is the approximate annual effective interest rate on this note payable?
5) Record the journal entries for the issuance of the note.

On March 1, 2014 Giant Jumbo Clown Costumes Borrowed Money