a.
Date | Particulars | Debit | Credit |
March 01,2014 | Cash A/C | 5,00,000 | |
Loan Payable A/C | 5,00,000 | ||
March 01,2014 | Accounts receivable Assigned | 800000 | |
Accounts receivable | 800000 |
b.
Date | Particulars | Debit | Credit |
March, 2014 | Restricted Cash A/C | 750000 | |
Accounts receivable Assigned | 750000 |
C.
Date | Particulars | Debit | Credit |
April 01,2014 | Finance Charge | 15000 | |
Interest on loan | 3750 | ||
Loan payable | 500000 | ||
Restricted Cash A/C | 518750 | ||
Calculation of Interest | |||
500000*9%*1/12 |
4. (10 points) On March 1, 2014, Rasheed Company assigns $800,000 of its accounts receivable to...
4. (10 points)On March 1, 2014, Rasheed Company assigns $800,000 of its accounts receivable to the Third National Bank as collateral for a $500,000 loan due April 1, 2014. The assignment agreement calls for Rasheed Company to continue to collect the receivables. Third National Bank assesses a finance charge of 3% of the accounts receivable, and interest on the loan is 9% (a realistic rate of interest for a note of this type).a. Prepare the March 1, 2014, journal entry...
On April 1, 2020, Wildhorse Company assigns $549,400 of its accounts receivable to the Third National Bank as collateral for a $301,600 loan due July 1, 2020. The assignment agreement calls for Wildhorse to continue to collect the receivables. Third National Bank assesses a finance charge of 3% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type). Prepare the journal entry for wildhorse company
On April 1, 2020, Grouper Company assigns $503,700 of its accounts receivable to the Third National Bank as collateral for a $340,000 loan due July 1, 2020. The assignment agreement calls for Grouper to continue to collect the receivables. Third National Bank assesses a finance charge of 3% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type). Prepare the April 1, 2020. journal entry for Grouper Company....
On April 1, 2020, Grouper Company assigns $503,700 of its accounts receivable to the Third National Bank as collateral for a $340,000 loan due July 1, 2020. The assignment agreement calls for Grouper to continue to collect the receivables. Third National Bank assesses a finance charge of 3% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type). Your answer is partially correct. Prepare the April 1, 2020,...
Exercise 7-15 On April 1, 2017, Cheyenne Company assigns $524,600 of its accounts receivable to the Third National Bank as collateral for assignment agreement callls for Cheyenne to continue to collect the receivables. Third National Bank assesses a finance charge of 4% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for $336,000 loan due July 1, 2017. The note of this type) Prepare the April 1, 2017, journal entry for C fele...
On April 1, 2020, Wildhorse Company assigns $549,400 of its accounts receivable to the Third National Bank as collateral for a $301,600 loan due July 1, 2020. The assignment agreement calls for Wildhorse to continue to collect the receivables. Third National Bank assesses a finance charge of 3% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type). Collapse question part (a) Partially correct answer. Your answer is...
On April 1, 2017, BLANK Company assigns $504,100 of its accounts receivable to the BLANK Bank as collateral for a $314,000 loan due July 1, 2017. The assignment agreement calls for BLANK company to continue to collect the receivables. BLANK Bank assesses a finance charge of 4% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type). Prepare the April 1, 2017, journal entry for BLANK Company. (If...
Liability Financing = N ince Charge Iggy Co assigns $800,000 of its accounts receivable to LMU Bank as collateral fora AR: $600,000 note. Iggy Co continues to collect the accounts receivable; the account debtors <X1% are not notified of the arrangement. LMU Bank assesses a finance charge of 1% of the accounts receivable assigned and an interest on the note of 12%. Iggy Co makes monthly 000 - Notes payments to LMU Bank for all cash it collects on the...
Sheffield Corp. assigns $4400000 of its accounts receivables as collateral for a $3.00 million loan with a bank. The bank assesses a 2% finance charge on the loan amount and charges interest on the note at 7%. What would be the journal entry to record this transaction? Debit Cash for $2730000, debit Interest Expense for $270000, and credit Notes Payable for $3000000 Debit Cash for $1830200, debit Interest Expense for $60000, debit Due from Bank for $1400000, and credit Accounts...
Moon Inc. assigns $4,500,000 of its accounts receivables as collateral for a $3 million loan with a bank. The bank assesses a 3% finance charge on the loan amount and charges interest on the note at 6%. What would be the journal entry to record this transaction? Answers: A. Debit Cash for $1,940,000, debit Interest Expense for $90,000, debit Due from Bank for $1,500,000, and credit Accounts Receivable for $4,500,000. B. Debit Cash for $2,730,000, debit Interest Expense for $270,000,...