Homework Answers
Journal Entries in the books of Brewer Company Option no: 1
01.01.2017 Notes receivable A/c Dr 35000
Interest recoverable A/c Dr 2800 (Entry to be passed monthly for 233.33)
To Shipley Ltd 37800
As Shipley ltd accepted the notes for an interest of 8% on Brewer Company, Interest payable monthly 233.33 by shipley ltd
31.07.2017 Interest recoverable Ac Dr 1633.31
To Interest received on notes 1633.31
As the interest on notes as accepted till 31.07.2017
31.12.2017 Interest recoverable Ac Dr 1166.69
To Interest received on notes 1166.69
As the interest on notes as accepted till 31.12.2017
Journal Entries in the books of Brewer Company Option no: 2
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Shipley Ltd. was experiencing a cash flow problem and was unable to pay its $35,000 account...
Ayayai Corp. was experiencing cash flow problems and was unable to pay its $96,000 account payable...
Ayayai Corp. was experiencing cash flow problems and was unable
to pay its $96,000 account payable to Bramble Corp. when it fell
due on September 30, 2020. Bramble agreed to substitute a one-year
note for the open account. The following two options were presented
to Ayayai by Bramble Corp.:
Option 1:
A one-year note for $96,000 due September 30, 2021. Interest at
a rate of 8% would be payable at maturity.
Option 2:
A one-year non–interest-bearing note for $103,680. The...
Novak Corp. was experiencing cash flow problems and was unable to pay its $115,000 account payable...
Novak Corp. was experiencing cash flow problems and was unable to pay its $115,000 account payable to Pina Corp. when it fell due on September 30, 2020. Pina agreed to substitute a one-year note for the open account. The following two options were presented to Novak by Pina Corp.: Option 1: A one-year note for $115,000 due September 30, 2021. Interest at a rate of 10% would be payable at maturity. Option 2: A one-year non-interest-bearing note for $126,500. The...
E7.11 (LO 6) (Interest-Bearing and Non–Interest-Bearing Notes) Little Corp. was experiencing cash flow problems and was...
E7.11 (LO 6) (Interest-Bearing and Non–Interest-Bearing Notes) Little Corp. was experiencing cash flow problems and was unable to pay its $105,000 account payable to Big Corp. when it fell due on September 30, 2020. Big agreed to substitute a one-year note for the open account. The following two options were presented to Little by Big Corp.: Option 1: A one-year note for $105,000 due September 30, 2021. Interest at a rate of 8% would be payable at maturity. Option 2:...
On January 1, 2017 Hoff sold land to Run Company, accepting a 3-year $200,000 non-interest-bearing note...
On January 1, 2017 Hoff sold land to Run Company, accepting a 3-year $200,000 non-interest-bearing note due January 1, 2018. The fair value of the land is $146,238. The land was originally purchased for $136,500 on January 1, 2010. An appropriate rate of interest for a note of this caliber is 11%. Required: Prepare all the journal entries in Hoff's books for the January 1,2017 through January 1, 2018, in regards to the Run note.
Short Answer Question 4 - Non-Interesting bearing note On January 1, 2018, Rose Kim Co performed...
Short Answer Question 4 - Non-Interesting bearing note On January 1, 2018, Rose Kim Co performed IT consulting services for Tee Wang Ca Tee Wang was short of cash and Rose Kim agreed to accept an $80,000 na Interest-bearing note due December 31, 2019 as payment in full Tee Wangis somewhat of a credit risk and typically borrows funds at a rate of 8% Rose Kim is much more creditworthy and has various ines of credit al 6% (b) Prepare...
On January 1, 2019, Eagle Company borrows $35,000 cash by signing a four-year, 7% installment note....
On January 1, 2019, Eagle Company borrows $35,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $10,333, consisting of accrued interest and principal on December 31 of each year from 2019 through 2022 Prepare the journal entries for Eagle to record the note's issuance and the four payments (Round your intermediate calculations and final answers to the nearest dollar amount.) View transaction list Eagle borrows $35,000 cash by signing a four-year, 7% installment...
teu premum was $15,000. Prepare the corporation s journal entry to record the reacquisERETUR BE14-10 (L03)...
teu premum was $15,000. Prepare the corporation s journal entry to record the reacquisERETUR BE14-10 (L03) Coldwell, Inc, issued a $100,000, 4-year, 10% note at face value to Flint Hills Bank on January 1, 2017 received $100,000 cash. The note requires annual interest payments each December 31. Prepare Coldwell's journal entri record (a) the issuance of the note and (b) the December 31 interest payment. BE14-11 (L03) Samson Corporation issued a 4-year, $75,000, zero-interest-bearing note to Brown Company on January...
On March 1, 2017, Sandhill Company sold goods to Goosen Inc. for $714,000 in exchange for...
On March 1, 2017, Sandhill Company sold goods to Goosen Inc. for $714,000 in exchange for a 5-year, zero-interest-bearing note in the face amount of $1,203,132 (an inputed rate of 11%). The goods have an inventory cost on Sandhill’s books of $439,000. (a) Prepare the journal entries for Sandhill on March 1, 2017. (b) Prepare the journal entries for Sandhill on December 31, 2017.
On March 1, 2017, Headland Company sold goods to Goosen Inc. for $714,000 in exchange for...
On March 1, 2017, Headland Company sold goods to Goosen Inc. for $714,000 in exchange for a 5-year, zero-interest-bearing note in the face amount of $1,203,132 (an inputed rate of 11%). The goods have an inventory cost on Headland’s books of $364,000. (a) Prepare the journal entries for Headland on March 1, 2017 (b) Prepare the journal entries for Headland on December 31, 2017
Jabieb corporation issued 3,000 convertible bonds on January 1, 2018. The bonds have a 3-year lif...
Jabieb corporation issued 3,000 convertible bonds on January 1, 2018. The bonds have a 3-year life and are issued at par with a face value of $1,000 per bond, giving total proceedings of $3,000,000. Interest is payable annually at 6%. Each bond is convertible into 200 ordinary shares (par value $1). The market rate of interest on similar non-convertible debt is 8% a) Compute the liability and equity component of the convertible bond on January 1, 2018. (5 marks) b)...
Ayayai Corp. was experiencing cash flow problems and was unable
to pay its $96,000 account payable to Bramble Corp. when it fell
due on September 30, 2020. Bramble agreed to substitute a one-year
note for the open account. The following two options were presented
to Ayayai by Bramble Corp.:
Option 1:
A one-year note for $96,000 due September 30, 2021. Interest at
a rate of 8% would be payable at maturity.
Option 2:
A one-year non–interest-bearing note for $103,680. The...
Novak Corp. was experiencing cash flow problems and was unable to pay its $115,000 account payable to Pina Corp. when it fell due on September 30, 2020. Pina agreed to substitute a one-year note for the open account. The following two options were presented to Novak by Pina Corp.: Option 1: A one-year note for $115,000 due September 30, 2021. Interest at a rate of 10% would be payable at maturity. Option 2: A one-year non-interest-bearing note for $126,500. The...
Short Answer Question 4 - Non-Interesting bearing note On January 1, 2018, Rose Kim Co performed IT consulting services for Tee Wang Ca Tee Wang was short of cash and Rose Kim agreed to accept an $80,000 na Interest-bearing note due December 31, 2019 as payment in full Tee Wangis somewhat of a credit risk and typically borrows funds at a rate of 8% Rose Kim is much more creditworthy and has various ines of credit al 6% (b) Prepare...
On January 1, 2019, Eagle Company borrows $35,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $10,333, consisting of accrued interest and principal on December 31 of each year from 2019 through 2022 Prepare the journal entries for Eagle to record the note's issuance and the four payments (Round your intermediate calculations and final answers to the nearest dollar amount.) View transaction list Eagle borrows $35,000 cash by signing a four-year, 7% installment...
teu premum was $15,000. Prepare the corporation s journal entry to record the reacquisERETUR BE14-10 (L03) Coldwell, Inc, issued a $100,000, 4-year, 10% note at face value to Flint Hills Bank on January 1, 2017 received $100,000 cash. The note requires annual interest payments each December 31. Prepare Coldwell's journal entri record (a) the issuance of the note and (b) the December 31 interest payment. BE14-11 (L03) Samson Corporation issued a 4-year, $75,000, zero-interest-bearing note to Brown Company on January...
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