On May 16, 2019, Safeway Company received a 90-day, 9 percent, $6,000 interest-bearing note from Black Company in settlement of Black's past-due account. On June 30, Safeway discounted this note at Fargo Bank and Trust. The bank charged a discount rate of 14 percent. On August 15, Safeway received a notice that Black had paid the note and the interest on the due date.
Required: Prepare the entries in general journal form to record these transactions.
Analyze: If the company prepared a balance sheet on July 31, 2019, how should Notes Receivable—Discounted be presented on the statement?
Homework Answers
1. to record the acceptance of note-
| Note Receivable | 6000 | |
| Black company account receivable | 6000 |
2. For discounting the note
| Cash/Bank | 5895 | |
| Discounting Charges | 105 | |
| Note Receivable | 6000 |
3. for payment of discounted note-
No journal would be recorded in the books of safeway company.
If the company prepared a balance sheet on 31st july 2019, the note receivable- discounted would be shown as a contingent liability in the foot notes (notes to accounts).
Add Answer to:
On May 16, 2019, Safeway Company received a 90-day, 9 percent,
$6,000 interest-bearing note from Black...
On May 16, 2016, Reliable Company received a 90-day, 8 percent, $6,600 interest-bearing note from White...
On May 16, 2016, Reliable Company received a 90-day, 8 percent, $6,600 interest-bearing note from White Company in settlement of White's past-due account. On June 30, Reliable discounted this note at Fargo Bank and Trust. The bank charged a discount rate of 13 percent. On August 15, Reliable received a notice that White had paid the note and the interest on the due date. Prepare the entries in general journal form to record these transactions. (Use 360 days a year....
The Gaynor Company had the following transactions involving notes payable during 2019. 7 Jan. 15 Purchased...
The Gaynor Company had the following transactions involving notes payable during 2019. 7 Jan. 15 Purchased office equipment from Corporate Outfitters and issued a 180- day, 10 percent note for $21,000. Apr. 10 Borrowed $14,000 at 12 percent from the Guarantee Bank by discounting a 60-day note payable. June 9 Paid the note due Guarantee Bank. July 14 Paid the note due Corporate Outfitters. Prepare the entries in general journal form to record these transactions. (Assume 360 days in a...
QS 9-4 Interest-bearing note transactions LO P1 On November 7, Mura Company borrows $370,000 cash by...
QS 9-4 Interest-bearing note transactions LO P1 On November 7, Mura Company borrows $370,000 cash by signing a 90-day, 8%, $370,000 note payable 1. Compute the accrued interest payable on December 31 2. & 3. Prepare the journal entry to record the accrued interest expense at December 31 and payment of the note at maturity on February 5. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Compute the accrued interest payable...
Callyds m yr omework i Saved On December 31, 2019, the ledger of Lopez Company contained...
Callyds m yr omework i Saved On December 31, 2019, the ledger of Lopez Company contained the following account balances: Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Maria Lopez, Capital $31,800 Maria Lopez, Drawing 2,300 Fees Income 1,500 Depreciation Expense 24,800 Salaries Expense 1.900 Supplies Expense 2,400 Telephone Expense 47,050 Utilities Expense $12,300 47,750 2,150 5,800 2,400 2,000 4,050 Prepare the closing entries for the above transactions. View transaction list Journal entry worksheet K12 3 4 Prepare the...
Following are transactions for Vitalo Company. Nov. 1 Accepted a $16,000, 180-day, 6% note from Kelly...
Following are transactions for Vitalo Company. Nov. 1 Accepted a $16,000, 180-day, 6% note from Kelly White in granting a time extension on her past-due account receivable. Dec. 31 Adjusted the year-end accounts for the accrued interest earned on the white note. Apr. 30 White honored her note when presented for payment. Complete the table to calculate the interest amounts at December 31st and April 30" and use those calculated values to prepare your journal entries. (Do not round intermediate...
CHECK MY WOK On June 3, 2019, Alaska State Company received a $5,400, 45 day, 12...
CHECK MY WOK On June 3, 2019, Alaska State Company received a $5,400, 45 day, 12 percent note from Samuel Adams, a customer whose account was past due. If Samuel Adams dishonored the note receivable discounted by Alaska State, assuming the bank deducted the maturity value of the dishonored note plus a $10 service charge from Alaska State's bank account on the due date of the note. Prepare the entries in general journal form that Alaska State Company would make...
On December 31, 2019, the ledger of Lopez Company contained the following account balances Cash Accounts...
On December 31, 2019, the ledger of Lopez Company contained the following account balances Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Maria Lopez, Capital $32,999 Maria Lopez, Drawing 2,850 Fees Income 2,050 Depreciation Expense 25,900 Salaries Expense 2,450 Supplies Expense 2,950 Telephone Expense 48,150 Utilities Expense $13,400 53,250 2,700 16,999 2,950 2,550 4,600 Prepare the closing entries for the above transactions, View transaction list Journal entry worksheet < 1 2 3 Prepare the closing entry for the drawing...
Exercise 9-3 Accounting for note payable LO P1 Sylvestor Systems borrows $163,000 cash on May 15,...
Exercise 9-3 Accounting for note payable LO P1 Sylvestor Systems borrows $163,000 cash on May 15, 2017, by signing a 60-day, 4% note. 1. On what date does this note mature? July 13, 2017 July 14, 2017 July 15, 2017 July 16, 2017 July 17, 2017 2. Assume the face value of the note equals $163,000, the principal of the loan. (a) Prepare the journal entry to record issuance of the note View transaction list Journal entry worksheet Record the...
Vypath llore er 9 Homework Help Seve & Exht Subm Check my work QS 9-4 Interest-bearing...
Vypath llore er 9 Homework Help Seve & Exht Subm Check my work QS 9-4 Interest-bearing note transactions LO P1 On November 7, Mura Company borrows $350,000 cash by signing a 90-day, 8%, $350,000 note payable. 1. Compute the accrued interest payable on December 31 2. & 3. Prepare the journal entry to record the accrued interest expense at December 31 and payment of the note at maturity on February 5. Complete this question by entering your answers in the...
Following are transactions for Vitalo Company. Nov. 1 Accepted a $16,000, 180-day, 69 note from Kelly...
Following are transactions for Vitalo Company. Nov. 1 Accepted a $16,000, 180-day, 69 note from Kelly White in granting a time extension on her past-due account receivable. Dec. 31 Adjusted the year-end accounts for the accrued interest earned on the White note. Apr. 30 White honored her note when presented for payment. Complete the table to calculate the interest amounts at December 31st and April 30' and use those calculated values to prepare your journal entries. (Do not round intermediate...
The Gaynor Company had the following transactions involving notes payable during 2019. 7 Jan. 15 Purchased office equipment from Corporate Outfitters and issued a 180- day, 10 percent note for $21,000. Apr. 10 Borrowed $14,000 at 12 percent from the Guarantee Bank by discounting a 60-day note payable. June 9 Paid the note due Guarantee Bank. July 14 Paid the note due Corporate Outfitters. Prepare the entries in general journal form to record these transactions. (Assume 360 days in a...
QS 9-4 Interest-bearing note transactions LO P1 On November 7, Mura Company borrows $370,000 cash by signing a 90-day, 8%, $370,000 note payable 1. Compute the accrued interest payable on December 31 2. & 3. Prepare the journal entry to record the accrued interest expense at December 31 and payment of the note at maturity on February 5. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Compute the accrued interest payable...
Callyds m yr omework i Saved On December 31, 2019, the ledger of Lopez Company contained the following account balances: Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Maria Lopez, Capital $31,800 Maria Lopez, Drawing 2,300 Fees Income 1,500 Depreciation Expense 24,800 Salaries Expense 1.900 Supplies Expense 2,400 Telephone Expense 47,050 Utilities Expense $12,300 47,750 2,150 5,800 2,400 2,000 4,050 Prepare the closing entries for the above transactions. View transaction list Journal entry worksheet K12 3 4 Prepare the...
Following are transactions for Vitalo Company. Nov. 1 Accepted a $16,000, 180-day, 6% note from Kelly White in granting a time extension on her past-due account receivable. Dec. 31 Adjusted the year-end accounts for the accrued interest earned on the white note. Apr. 30 White honored her note when presented for payment. Complete the table to calculate the interest amounts at December 31st and April 30" and use those calculated values to prepare your journal entries. (Do not round intermediate...
CHECK MY WOK On June 3, 2019, Alaska State Company received a $5,400, 45 day, 12 percent note from Samuel Adams, a customer whose account was past due. If Samuel Adams dishonored the note receivable discounted by Alaska State, assuming the bank deducted the maturity value of the dishonored note plus a $10 service charge from Alaska State's bank account on the due date of the note. Prepare the entries in general journal form that Alaska State Company would make...
On December 31, 2019, the ledger of Lopez Company contained the following account balances Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Maria Lopez, Capital $32,999 Maria Lopez, Drawing 2,850 Fees Income 2,050 Depreciation Expense 25,900 Salaries Expense 2,450 Supplies Expense 2,950 Telephone Expense 48,150 Utilities Expense $13,400 53,250 2,700 16,999 2,950 2,550 4,600 Prepare the closing entries for the above transactions, View transaction list Journal entry worksheet < 1 2 3 Prepare the closing entry for the drawing...
Exercise 9-3 Accounting for note payable LO P1 Sylvestor Systems borrows $163,000 cash on May 15, 2017, by signing a 60-day, 4% note. 1. On what date does this note mature? July 13, 2017 July 14, 2017 July 15, 2017 July 16, 2017 July 17, 2017 2. Assume the face value of the note equals $163,000, the principal of the loan. (a) Prepare the journal entry to record issuance of the note View transaction list Journal entry worksheet Record the...
Vypath llore er 9 Homework Help Seve & Exht Subm Check my work QS 9-4 Interest-bearing note transactions LO P1 On November 7, Mura Company borrows $350,000 cash by signing a 90-day, 8%, $350,000 note payable. 1. Compute the accrued interest payable on December 31 2. & 3. Prepare the journal entry to record the accrued interest expense at December 31 and payment of the note at maturity on February 5. Complete this question by entering your answers in the...
Following are transactions for Vitalo Company. Nov. 1 Accepted a $16,000, 180-day, 69 note from Kelly White in granting a time extension on her past-due account receivable. Dec. 31 Adjusted the year-end accounts for the accrued interest earned on the White note. Apr. 30 White honored her note when presented for payment. Complete the table to calculate the interest amounts at December 31st and April 30' and use those calculated values to prepare your journal entries. (Do not round intermediate...
Most questions answered within 3 hours.
-
Write a program to solve the Josephus problem, with the following
modification:
Sample Input:
./a.out n...
asked 8 minutes ago -
At the start of a CD it is spinning at a rate of 525 rpm
(revolutions...
asked 44 minutes ago -
4. Without doing any calculations, predict whether the observed
∆T would increase, decrease or remain the...
asked 1 hour ago -
Based on the range, which of the following sets of scores has
the greatest variability? 3,...
asked 3 hours ago -
Ripples in a pond travel at a velocity of 3 m/s with one peak
passing a...
asked 2 hours ago -
A man stands on the roof of a building of height 13.0 mm and
throws a...
asked 3 hours ago -
The extent to which assets are financed by borrowed funds and
other liabilities is indicated by:...
asked 4 hours ago -
Explain in detail
Germany is the fifth largest economy
explain what goods and services Germany specializes...
asked 4 hours ago -
The density of platinum is 21.45 g/mL. If a cube of platinum
with a mass of...
asked 4 hours ago -
Accounts Receivable
Sales
A/R Posting
Extended Sales Invoice
Packing Slip
Compare invoice to packing slip 2...
asked 4 hours ago -
Michaella, age 23, is a full-time law student and is claimed by
her parents as a...
asked 4 hours ago -
Why are polymers not typically casted into products?
asked 4 hours ago