Homework Answers
48. When the holder of an interest-bearing note is unable to collect the note when due, the journal entry includes debiting Accounts Receivable and crediting Notes Receivable and Interest Revenue (option d)
Explanation: A dishonored note is a note that the company failed to pay at maturity. Since the note has matured, the holder or payee removes the note from Notes Receivable and records the amount due in Accounts Receivable. If the note was honored by the company, cash would have been debited instead of accounts receivable.
49. Face value of a note plus interest is called the maturity value (option d)
Explanation: Maturity value is the amount that the company must pay on a note on its maturity date (Generally, it includes principal and accrued interest)
50. The adjusting entry for accrued interest on a notes receivable includes debiting Accrued Interest Receivable and crediting Interest Revenue (option b)
Explanation: The accrued interest receivable will be an asset on the balance sheet and there will be an interest revenue recognized in the income statement.
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48. When the holder of an interest-bearing note is unable to collect the note when due,...
p 46. When a bank collects a note for the holder, it notifies the holder on...
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46. When a bank collects a note for the holder, it notifies the holder on a form called a 47.A $5,000, 12% note is dated April 10 and is due in 90 days. The due date would be 48. When the holder of an interest-bearing note is unable to collect the note when due, the journal entry includes 49. Face value of a note plus interest is called the -50. The adjusting entry for accrued interest on a notes...
46 When a bank collects a note for the holder, it notifies the holder on a...
46 When a bank collects a note for the holder, it notifies the holder on a form called a 87)55,000, 12% note is dated April 10 and is due in 90 days. The due date would be 4e When the holder of an interest-bearing note is unable to collect the note when due, the jo entry includes 49. Face value of a note plus interest is called the The adjusting entry for accrued interest on a notes receivable includes 51....
46. When a bank collects a note for the holder, i nouifies the hoider on s...
46. When a bank collects a note for the holder, i nouifies the hoider on s form caliled a 47 A $5,000, 12% note is dated April 10 and is due in 90 days.The due date would be 48. When the holder of an interest-bearing note is unabile to entry includes collect the note when due, the journal 49. Face value of a note plus interest is called the O. The adjusting entry for accrued interest on a notes receivable...
when an interest bearing note is dishonoured at maturity and ultimate collection of the principal and...
when an interest bearing note is dishonoured at maturity and ultimate collection of the principal and interest is expected, the entry for the dishonouring-assuming no previous accrual of interest should include: a. a debit to allowance for doubtful accounts b. only a credit to notes recievable c. a credit to notes receivable and interest revenue d. a credit to notes receivable and interest recievable e. none of the above
40. A note on which no rate of interest is specified is atn) market-rate note interest-bearing...
40. A note on which no rate of interest is specified is atn) market-rate note interest-bearing note. non-interest-bearing note variable note b. d. rses a note and transfers it to a bank, the process is callerd discounting a note receivable. b. cosigning a note receivable. collecting a note receivable dishonoring a note receivable. person who promises to pay a certain amount of money at a definite future time is caliled the b. c. discounter of the note. 42. The maker...
Airport Software Ltd. includes an 5% sales tax in the amount credited to the sales account....
Airport Software Ltd. includes an 5% sales tax in the amount credited to the sales account. If the sales account has a balance of $675,250, the amount of the sales tax payable to the government is: O A. $29,347 O B. $32,155 OC. $29,450 OD. $33,763 A contingent liability that has a remote chance of occurrence should be disclosed in the financial statement footnotes. O True False Accrued interest on a short – term note payable is recorded by: O...
Chart of Accounts: Hemingway Company purchases equipment by issuing a 7-year, $420,000 non-interest-bearing note, when the...
Chart of Accounts:
Hemingway Company purchases equipment by issuing a 7-year, $420,000 non-interest-bearing note, when the market rate for this type of note is 7%. Hemingway will pay off the note with equal payments to be made at the end of each year. Required: Prepare the journal entry to record Hemingway's acquisition of the equipment. Prepare the journal entry to record Hemingway's acquisition of the equipment on January 1. General Journal Instructions PAGE 10 GENERAL JOURNAL DATE ACCOUNT TITLE POST....
Brief Exercise 7-8 Tony Acrobats lent $25,972 to Donaldson, Inc., accepting Donaldson’s 2-year, $32,000, zero-interest-bearing note....
Brief Exercise 7-8
Tony Acrobats lent $25,972 to Donaldson, Inc., accepting
Donaldson’s 2-year, $32,000, zero-interest-bearing note. The
implied interest rate is 11%.
Prepare Tony’s journal entries for the initial transaction,
recognition of interest each year, and the collection of $32,000 at
maturity. (Round answers to 0 decimal places, e.g.
5,275. If no entry is required, select "No Entry" for the account
titles and enter 0 for the amounts. Credit account titles are
automatically indented when the amount is entered. Do...
The journal entry to record the collection of the amount due on an interest-bearing promissory note...
The journal entry to record the collection of the amount due
on an interest-bearing promissory note form a customer would debit
Cash, credit Notes Recievable, and
MC Qu. 9-33 The journal entry to record the... The journal entry to record the collection of the amount due on an interest beaning promissory note from a customer would debit Cash, credit Notes Receivable, and Choice O debito pense O crede Irenest Experne Credit Instincome o income < P 6 H d >...
ktbook Solutions Cheg 172935/quizzes/741774/take Question 26 The entry to record the proceeds upon issuing an interest-bearing...
ktbook Solutions Cheg 172935/quizzes/741774/take Question 26 The entry to record the proceeds upon issuing an interest-bearing note is (Credit entries are indented) A. Interest Expense Cash Notes Payable B. Cash Notes Payable C. Notes Payable Cash D. Cash Notes Payable Interest Payable
p
46. When a bank collects a note for the holder, it notifies the holder on a form called a 47.A $5,000, 12% note is dated April 10 and is due in 90 days. The due date would be 48. When the holder of an interest-bearing note is unable to collect the note when due, the journal entry includes 49. Face value of a note plus interest is called the -50. The adjusting entry for accrued interest on a notes...
46 When a bank collects a note for the holder, it notifies the holder on a form called a 87)55,000, 12% note is dated April 10 and is due in 90 days. The due date would be 4e When the holder of an interest-bearing note is unable to collect the note when due, the jo entry includes 49. Face value of a note plus interest is called the The adjusting entry for accrued interest on a notes receivable includes 51....
46. When a bank collects a note for the holder, i nouifies the hoider on s form caliled a 47 A $5,000, 12% note is dated April 10 and is due in 90 days.The due date would be 48. When the holder of an interest-bearing note is unabile to entry includes collect the note when due, the journal 49. Face value of a note plus interest is called the O. The adjusting entry for accrued interest on a notes receivable...
40. A note on which no rate of interest is specified is atn) market-rate note interest-bearing note. non-interest-bearing note variable note b. d. rses a note and transfers it to a bank, the process is callerd discounting a note receivable. b. cosigning a note receivable. collecting a note receivable dishonoring a note receivable. person who promises to pay a certain amount of money at a definite future time is caliled the b. c. discounter of the note. 42. The maker...
Airport Software Ltd. includes an 5% sales tax in the amount credited to the sales account. If the sales account has a balance of $675,250, the amount of the sales tax payable to the government is: O A. $29,347 O B. $32,155 OC. $29,450 OD. $33,763 A contingent liability that has a remote chance of occurrence should be disclosed in the financial statement footnotes. O True False Accrued interest on a short – term note payable is recorded by: O...
Chart of Accounts:
Hemingway Company purchases equipment by issuing a 7-year, $420,000 non-interest-bearing note, when the market rate for this type of note is 7%. Hemingway will pay off the note with equal payments to be made at the end of each year. Required: Prepare the journal entry to record Hemingway's acquisition of the equipment. Prepare the journal entry to record Hemingway's acquisition of the equipment on January 1. General Journal Instructions PAGE 10 GENERAL JOURNAL DATE ACCOUNT TITLE POST....
Brief Exercise 7-8
Tony Acrobats lent $25,972 to Donaldson, Inc., accepting
Donaldson’s 2-year, $32,000, zero-interest-bearing note. The
implied interest rate is 11%.
Prepare Tony’s journal entries for the initial transaction,
recognition of interest each year, and the collection of $32,000 at
maturity. (Round answers to 0 decimal places, e.g.
5,275. If no entry is required, select "No Entry" for the account
titles and enter 0 for the amounts. Credit account titles are
automatically indented when the amount is entered. Do...
The journal entry to record the collection of the amount due
on an interest-bearing promissory note form a customer would debit
Cash, credit Notes Recievable, and
MC Qu. 9-33 The journal entry to record the... The journal entry to record the collection of the amount due on an interest beaning promissory note from a customer would debit Cash, credit Notes Receivable, and Choice O debito pense O crede Irenest Experne Credit Instincome o income < P 6 H d >...
ktbook Solutions Cheg 172935/quizzes/741774/take Question 26 The entry to record the proceeds upon issuing an interest-bearing note is (Credit entries are indented) A. Interest Expense Cash Notes Payable B. Cash Notes Payable C. Notes Payable Cash D. Cash Notes Payable Interest Payable
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