Bert Morrison Negotiated a $40,000 Bank Loan for 180 Days

Short Answer

Bert Morrison negotiated a $40,000 bank loan for 180 days at a bank rate of 14%. The bank deducted the interest in advance.
Required (show your calculations):
a) Calculate the amount of interest charged by the bank.
b) Calculate the amount of cash Bert received from the bank.
c) Calculate the effective interest rate charged by the bank.
d) Prepare Bert's journal entry for the transaction.