Homework Answers
Option B
Cash A/c Debit
To Notes Payable
Interest entry accrues periodically but not at the beginning of the note payable
Entries for interest will be like below
1. Interest Expense Debit
To Interest payable A.c Credit
2. Interest payable A/c Debit
To Cash A/c Credit
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ktbook Solutions Cheg 172935/quizzes/741774/take Question 26 The entry to record the proceeds upon issuing an interest-bearing...
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 >...
Carla Corporation purchased a truck by Issuing an $86,400,4-yea, zero-interest-bearing note to Equinox Inc. The market...
Carla Corporation purchased a truck by Issuing an $86,400,4-yea, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this mature 11%. Prepare the journal entry to record the purchase of this truck. (Round present value factor calculations to decimal places .g. 1.25124 and nalanswers to decimal places 5,275. Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no antry is required, elect"No Entry for the account titles and enter O...
Steve Acrobats lent $13,798 to Donaldson, Inc., accepting Donaldson's 2-years, $17,000, zero-interest-bearing note. The...
Steve Acrobats lent $13,798 to Donaldson, Inc., accepting Donaldson's 2-years, $17,000, zero-interest-bearing note. The implied interest rate is 11% Prepare Steve's journal entries for the initial transaction, recognition of interest each year, and the collection of $17,000 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 not indent manually.)...
Proceeds from Notes Payable On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing...
Proceeds from Notes Payable On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a 120-day note with a face amount of $44,400. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of 9%. b. Determine the proceeds of the note, assuming the note is discounted at 9%. Journalize Payroll Tax The payroll register of Patel Heritage Co indicates $1,308 of social security withheld and $327.00 of Medicare tax...
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....
Bref Exercise 10-05 Martinez Corporation purchased a truck by issuing an $110,400, 4 year, zero-interest-bearing note...
Bref Exercise 10-05 Martinez Corporation purchased a truck by issuing an $110,400, 4 year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 9%. Prepare the journal entry to record the purchase of the truck (Round present value factor calculations te decimal places 1.25124 and final answers to decimal places 5.275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry...
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...
During 2021, Carla Vista Co, borrowed cash from Wildhorse Co. by issuing notes payable as follows....
During 2021, Carla Vista Co, borrowed cash from Wildhorse Co. by issuing notes payable as follows. 1. July 1, 2021, issued an eight-month.5% note for $71.400. Interest and principal are payable at maturity. 2. November 1, 2021, issued a three-month, 5% note for $52.800 Interest is payable monthly on the first day of the month Principal is payable at maturity Carla Vista has a December 31 fiscal year end and prepares adjusting entries on an annual basis. Prepare all necessary...
Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $250,000 cash on...
Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $250,000 cash on November 1 of the current year by signing a 120-day, 11%, $250,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of...
On December 31, 2020, Coronado Company acquired a computer from Plato Corporation by issuing a $569,000...
On December 31, 2020, Coronado Company acquired a computer from Plato Corporation by issuing a $569,000 zero-interest-bearing note, payable in full on December 31, 2024. Coronado Company's credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $65,000 salvage value. Prepare the journal entry for the purchase on December 31, 2020. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the...
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 >...
Carla Corporation purchased a truck by Issuing an $86,400,4-yea, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this mature 11%. Prepare the journal entry to record the purchase of this truck. (Round present value factor calculations to decimal places .g. 1.25124 and nalanswers to decimal places 5,275. Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no antry is required, elect"No Entry for the account titles and enter O...
Steve Acrobats lent $13,798 to Donaldson, Inc., accepting Donaldson's 2-years, $17,000, zero-interest-bearing note. The implied interest rate is 11% Prepare Steve's journal entries for the initial transaction, recognition of interest each year, and the collection of $17,000 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 not indent manually.)...
Proceeds from Notes Payable On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a 120-day note with a face amount of $44,400. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of 9%. b. Determine the proceeds of the note, assuming the note is discounted at 9%. Journalize Payroll Tax The payroll register of Patel Heritage Co indicates $1,308 of social security withheld and $327.00 of Medicare tax...
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....
Bref Exercise 10-05 Martinez Corporation purchased a truck by issuing an $110,400, 4 year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 9%. Prepare the journal entry to record the purchase of the truck (Round present value factor calculations te decimal places 1.25124 and final answers to decimal places 5.275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry...
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...
During 2021, Carla Vista Co, borrowed cash from Wildhorse Co. by issuing notes payable as follows. 1. July 1, 2021, issued an eight-month.5% note for $71.400. Interest and principal are payable at maturity. 2. November 1, 2021, issued a three-month, 5% note for $52.800 Interest is payable monthly on the first day of the month Principal is payable at maturity Carla Vista has a December 31 fiscal year end and prepares adjusting entries on an annual basis. Prepare all necessary...
Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $250,000 cash on November 1 of the current year by signing a 120-day, 11%, $250,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of...
On December 31, 2020, Coronado Company acquired a computer from Plato Corporation by issuing a $569,000 zero-interest-bearing note, payable in full on December 31, 2024. Coronado Company's credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $65,000 salvage value. Prepare the journal entry for the purchase on December 31, 2020. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the...
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