On january 2, 2016, alpha company purchased a patent for $38,500 plus $2,000 in legal fees. on that date, the patent had a remaining legal life of 13 years. alpha company expects to use the patent for six years. use this information to prepare the general journal entry (without explanation) for december 31, 2016 end of the year adjusting entry. if no entry is required then write "no entry required."

Ummit record company is negotiating with two banks for a $157,000 loan. fidelity bank requires a compensating balance of 24 percent, discounts the loan, and wants to be paid back in four quarterly payments. southwest bank requires a compensating balance of 12 percent, does not discount the loan, but wants to be paid back in 12 monthly installments. the stated rate for both banks is 9 percent. compensating balances will be subtracted from the $157,000 in determining the available funds in part a. a-1. calculate the effective interest rate for fidelity bank and southwest bank. (do not round intermediate calculations. input your answers as a percent rounded to 2 decimal places.) a-2. which loan should summit accept? southwest bank fidelity bank b. recompute the effective cost of interest, assuming that summit ordinarily maintains $37,680 at each bank in deposits that will serve as compensating balances