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A company receives interest on a $99000, 6%, 5-year note
receivable each April 1. At December 31, 2020, the following
adjusting entry was made to accrue interest receivable:
Interest Receivable
4455
Interest Revenue
4455
Assuming that the company does not use reversing
entries, what entry should be made on April 1, 2021 when the annual
interest payment is received?
Cash
4455
Interest Receivable
4455
Cash
5940
Interest Revenue
5940
Cash
1485
Interest Revenue
1485
Cash
5940
Interest Receivable
4455
Interest...
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A company receives interest on a $90,000, 8%, 5-year note
receivable each April 1. At December 31, 2020, the following
adjusting entry was made to accrue interest receivable:
Interest
Receivable
............................................................... 5,400
Interest
Revenue
...................................................... 5,400
Assuming that the company does use reversing
entries, what entry should be made on April 1, 2021 when the annual
interest payment is received?
Cash
....................................................................................................1,800
Interest Revenue
......................................................
1,800
Cash
....................................................................................................5,400
Interest Revenue
.........................................................................................5,400
Cash
.............................................................
7,200
Interest
Receivable..................................................5,400
Interest
Revenue.....................................................1,800
Cash
....................................................................................................7,200...
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1. A company receives interest on a $40,000, 8%, 5-year note receivable each April 1. At December 31, 2020, the following adjusting entry was made to accrue interest receivable: Interest Receivable ........... ....... 2,400 Interest Revenue ................. 2,400 Assuming that the company does use reversing entries, what entry should be made on April 1, 2021 when the annual interest payment is received?
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41. A company receives interest on a $90,000, 8%, 5-year note receivable each April 1. At December 31, 2020, the following adjusting entry was made to accrue interest receivable: Interest Receivable 5,400 Interest Revenue .... 5,400 Assuming that the company does use reversing entries, what entry should be made on April 1, 2021 when the annual interest payment is received? a. Cash .1,800 Interest Revenue 1,800 b. Cash -5,400 Interest Receivable 5,400 Cash 7,200 Interest Receivable 5,400 Interest Revenue 1,800...
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41. A company receives interest on a $90,000, 8%, 5-year note receivable each April 1. At December 31, 2020, the following adjusting entry was made to accrue interest receivable: Interest Receivable 5,400 Interest Revenue ..... 5,400 Assuming that the company does use reversing entries, what entry should be made on April 1, 2021 when the annual interest payment is received? a. Cash .1,800 Interest Revenue 1,800 b. Cash 5,400 Interest Receivable 5,400 c. Cash 7,200 Interest Receivable 5,400 Interest Revenue...
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7. A company receives interest on a $40,000, 8%, 5-year note receivable each April 1. At December 31, 2020, the following adjusting entry was made to accrue interest receivable: Interest Receivable ................ 2,400 Interest Revenue ........ 2,400
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Delta borrowed $1,400 in the form of a 6-month,
zero-interest-bearing note on October 1, 2020 and is required to
pay $1,440 on March 1, 2021. (show calculations)
16) What amount does Delta record as the note payable on October
1, 2020?
17) How much interest expense does Delta recognize on its income
statement for 2020?
18)Gamma receives interest on a $900, 8%, 5-year note receivable
each April 1. At December 31, 2017, the appropriate adjusting entry
was made to accrue...
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32. Garber Company lends Newell Company $20,000 on April 1, accepting a four-month, 6% interest note. Garber Company prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared? Accrual Accounting!!! A) Note Receivable 20,000 Cash 20,000 B) Interest Receivable Interest Revenue 100 C) Cash Interest Revenue 100 D) Interest Receivable Interest Revenue 300
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Below are transactions for Wolverine Company during 2021. 1. On December 1, 2021, Wolverine receives $4,000 cash from a company that is renting office space from Wolverine. The payment, representing rent for December and January, is credited to Deferred Revenue. 2. Wolverine purchases a one-year property insurance policy on July 1, 2021, for $13,200. The payment is debited to Prepaid Insurance for the entire amount 3. Employee salaries of $3,000 for the month of December will be paid in early...
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Problem 5-8B Record long-term notes receivable and interest
revenue (LO5-7)
On April 15, 2021, Sampson Consulting provides services to a
customer for $92,000. To pay for the services, the customer signs a
three-year, 9% note. The face amount is due at the end of the third
year, while annual interest is due each April 15. (Hint:
Because the note is accepted during the middle of the month,
Sampson plans to recognize one-half month of interest revenue in
April 2021, and...
1. A company receives interest on a $40,000, 8%, 5-year note receivable each April 1. At December 31, 2020, the following adjusting entry was made to accrue interest receivable: Interest Receivable ........... ....... 2,400 Interest Revenue ................. 2,400 Assuming that the company does use reversing entries, what entry should be made on April 1, 2021 when the annual interest payment is received?
41. A company receives interest on a $90,000, 8%, 5-year note receivable each April 1. At December 31, 2020, the following adjusting entry was made to accrue interest receivable: Interest Receivable 5,400 Interest Revenue .... 5,400 Assuming that the company does use reversing entries, what entry should be made on April 1, 2021 when the annual interest payment is received? a. Cash .1,800 Interest Revenue 1,800 b. Cash -5,400 Interest Receivable 5,400 Cash 7,200 Interest Receivable 5,400 Interest Revenue 1,800...
41. A company receives interest on a $90,000, 8%, 5-year note receivable each April 1. At December 31, 2020, the following adjusting entry was made to accrue interest receivable: Interest Receivable 5,400 Interest Revenue ..... 5,400 Assuming that the company does use reversing entries, what entry should be made on April 1, 2021 when the annual interest payment is received? a. Cash .1,800 Interest Revenue 1,800 b. Cash 5,400 Interest Receivable 5,400 c. Cash 7,200 Interest Receivable 5,400 Interest Revenue...
7. A company receives interest on a $40,000, 8%, 5-year note receivable each April 1. At December 31, 2020, the following adjusting entry was made to accrue interest receivable: Interest Receivable ................ 2,400 Interest Revenue ........ 2,400
32. Garber Company lends Newell Company $20,000 on April 1, accepting a four-month, 6% interest note. Garber Company prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared? Accrual Accounting!!! A) Note Receivable 20,000 Cash 20,000 B) Interest Receivable Interest Revenue 100 C) Cash Interest Revenue 100 D) Interest Receivable Interest Revenue 300
Below are transactions for Wolverine Company during 2021. 1. On December 1, 2021, Wolverine receives $4,000 cash from a company that is renting office space from Wolverine. The payment, representing rent for December and January, is credited to Deferred Revenue. 2. Wolverine purchases a one-year property insurance policy on July 1, 2021, for $13,200. The payment is debited to Prepaid Insurance for the entire amount 3. Employee salaries of $3,000 for the month of December will be paid in early...
Problem 5-8B Record long-term notes receivable and interest
revenue (LO5-7)
On April 15, 2021, Sampson Consulting provides services to a
customer for $92,000. To pay for the services, the customer signs a
three-year, 9% note. The face amount is due at the end of the third
year, while annual interest is due each April 15. (Hint:
Because the note is accepted during the middle of the month,
Sampson plans to recognize one-half month of interest revenue in
April 2021, and...