Homework Answers
Answer -
Step - (1) - Information Given-
On January 1, 2019, Jason Company assigned $1000000 of accounts receivable to Easy Finance Corporation as security for a loan of $840000.
Easy Finance Corporation charged a 2% finance charge on the amount of the loan; the interest rate on the loan was 10%.
During the month of January, Jason collected $220000 on assigned accounts receivable.
Jason Company made the first partial payment of the loan on January 31, 2019.
.
Step - (2) -
Journal of Jason Company
| Date | Particulars | Debit ($) | Credit ($) | |
| a. | January 1, 2019 |
Cash [Balancing figure] Finance Charge [$840000*2%] Notes Payable |
823200 16800 - |
- - 840000 |
| b. | January, 2019 |
Cash Accounts Receivable |
220000 - |
- 220000 |
| January 31, 2019 |
Notes Payable Interest Expense [($840000*10%)*1/12] Cash |
220000 7000 - |
- - 227000 |
|
Add Answer to:
PLEASE, INCLUDE ALL THE MATHEMATICAL PROCEDURE. THANKS!
Part Three: Problem On January 1, 2019, Jason Company...
Part Three: Problem (8 points) On January 1, 2019, Jason Company assigned $1,000,000 of accounts receivable...
Part Three: Problem (8 points) On January 1, 2019, Jason Company assigned $1,000,000 of accounts receivable to Easy Finance Corporation as security for a loan of $840,000. Easy Finance Corporation charged a 2% finance charge on the amount of the loan; the interest rate on the loan was 10%. During the month of January, Jason collected $220,000 on assigned accounts receivable. Jason Company made the first partial payment of the loan on January 31, 2019. A. Required: Prepare the required...
PLEASE, INCLUDE ALL THE MATHEMATICAL PROCEDURE. THANKS! Part Two: Problem On February 1, 2019, Norton Company...
PLEASE, INCLUDE ALL THE MATHEMATICAL PROCEDURE. THANKS!
Part Two: Problem On February 1, 2019, Norton Company factored accounts receivables with a carrying amount of $500,000 to Koch Bank. Koch Bank assesses a finance charge of 3% of the receivables and reserve 5% of the receivables. A. Assume the Norton factors the receivable on a without recourse basis. What is the loss on sale to be reported in the income statement of Norton Company for February? B. Assume the Norton factors...
Part Six: Problem. On March 31, 2019, Merle Company had an unadjusted debit balance of $12,350...
Part Six: Problem. On March 31, 2019, Merle Company had an unadjusted debit balance of $12,350 in its allowance for uncollectible accounts and a $587,400 debit balance in its accounts receivable account. The Company reported net credit sales of $4,500,000 during the first quarter. An analysis of Merle's trade accounts receivable at that date revealed the following: Days Past Due Amount Estimated uncollectible Current S124,000 3% 1-30 days 74.500 7% 31-60 days67,200 12% 61-90 days 45,700 30% Over 90 days...
On January 1, 2019, Worthylake Company sold used machinery to Brown Company, accepting a $25,000, non-interest-bearing...
On January 1, 2019, Worthylake Company sold used machinery to
Brown Company, accepting a $25,000, non-interest-bearing note
maturing on January 1, 2021. Worthylake carried the machinery on
its books at a cost of $21,000 and a current book value of $16,000.
Neither the fair value of the machinery nor the note was
determinable at the time of sale; however, Brown’s incremental
borrowing rate was 10%.
Required:
Prepare the journal entries on Worthylake’s books to
record:
1.
sale of the machinery...
Rooney Pointers Corporation expects to begin operations on January 1, 2019; it will operate as a...
Rooney Pointers Corporation expects to begin operations on January 1, 2019; it will operate as a specialty sales company that sells laser pointers over the Internet. Rooney expects sales in January 2019 to total $220,000 and to increase 10 percent per month in February and March. All sales are on account. Rooney expects to collect 69 percent of accounts receivable in the month of sale, 22 percent in the month following the sale, and 9 percent in the second month...
Part Two: Problem (10 points) On February 1, 2019, Norton Company factored accounts receivables with a...
Part Two: Problem (10 points) On February 1, 2019, Norton Company factored accounts receivables with a carrying amount of $500,000 to Koch Bank. Koch Bank assesses a finance charge of 3% of the receivables and reserve 5% of the receivables. A. Assume the Norton factors the receivable on a without recourse basis. What is the loss on sale to be reported in the income statement of Norton Company for February? B. Assume the Norton factors the receivable on a with...
Finman company designated Jill Holland as pretty cash custodian and established a pretty cash fund of...
Finman company designated Jill Holland as pretty cash custodian and
established a pretty cash fund of 200$.
Problem 1 (25 points): The following transactions occurred in Mars Co. in 2019 1. Accounts receivable in the amount of $1,000,000 were assigned to Utley Finance Co. by Mars as security for a loan of $850,000. Utley charged a 3% commission on the accounts; the interest rate on the note is 12%. 2. During the first month, Mars collected $400,000 on assigned accounts...
Please solve. PART 1 The following information is available for a company as of January 1,...
Please solve.
PART 1 The following information is available for a company as of January 1, 2019: Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable (net) $300,000 (8,000) 292,000 The following events took place during 2019: 1. During the year, the company sold services for $600,000 cash and $2,800,000 on credit. 2. On December 31, a decision was made to estimate bad debts as 1% of credit sales. 3. Accounts Receivable of $3,000 from prior years was determined to be...
Problem S-18 (IAA) During the second year of operations, Fauna Company itself in financial dificulties. The entity...
Problem S-18 (IAA) During the second year of operations, Fauna Company itself in financial dificulties. The entity decided t contin nue acpounts receivable as a means of obtaining cash to operations On July 1, 2019, the entity sold P1.500,000 of a receivable for cash proceeds of P1.390,000. No bad de allow ance was associated with these accounts. On December 15, 2019, the entity assigned the remainde the accounts receivable, P5.000,000 as of that date. ,s collateral on a P2,500,000, 12%...
Spalding Pointers Corporation expects to begin operations on January 1, 2019; it will operate as a...
Spalding Pointers Corporation expects to begin operations on January 1, 2019; it will operate as a specialty sales company that sells laser pointers over the Internet. Spalding expects sales in January 2019 to total $120,000 and to increase 5 percent per month in February and March. All sales are on account. Spalding expects to collect 70 percent of accounts receivable in the month of sale, 20 percent in the month following the sale, and 10 percent in the second month...
Part Three: Problem (8 points) On January 1, 2019, Jason Company assigned $1,000,000 of accounts receivable to Easy Finance Corporation as security for a loan of $840,000. Easy Finance Corporation charged a 2% finance charge on the amount of the loan; the interest rate on the loan was 10%. During the month of January, Jason collected $220,000 on assigned accounts receivable. Jason Company made the first partial payment of the loan on January 31, 2019. A. Required: Prepare the required...
PLEASE, INCLUDE ALL THE MATHEMATICAL PROCEDURE. THANKS!
Part Two: Problem On February 1, 2019, Norton Company factored accounts receivables with a carrying amount of $500,000 to Koch Bank. Koch Bank assesses a finance charge of 3% of the receivables and reserve 5% of the receivables. A. Assume the Norton factors the receivable on a without recourse basis. What is the loss on sale to be reported in the income statement of Norton Company for February? B. Assume the Norton factors...
Part Six: Problem. On March 31, 2019, Merle Company had an unadjusted debit balance of $12,350 in its allowance for uncollectible accounts and a $587,400 debit balance in its accounts receivable account. The Company reported net credit sales of $4,500,000 during the first quarter. An analysis of Merle's trade accounts receivable at that date revealed the following: Days Past Due Amount Estimated uncollectible Current S124,000 3% 1-30 days 74.500 7% 31-60 days67,200 12% 61-90 days 45,700 30% Over 90 days...
On January 1, 2019, Worthylake Company sold used machinery to
Brown Company, accepting a $25,000, non-interest-bearing note
maturing on January 1, 2021. Worthylake carried the machinery on
its books at a cost of $21,000 and a current book value of $16,000.
Neither the fair value of the machinery nor the note was
determinable at the time of sale; however, Brown’s incremental
borrowing rate was 10%.
Required:
Prepare the journal entries on Worthylake’s books to
record:
1.
sale of the machinery...
Part Two: Problem (10 points) On February 1, 2019, Norton Company factored accounts receivables with a carrying amount of $500,000 to Koch Bank. Koch Bank assesses a finance charge of 3% of the receivables and reserve 5% of the receivables. A. Assume the Norton factors the receivable on a without recourse basis. What is the loss on sale to be reported in the income statement of Norton Company for February? B. Assume the Norton factors the receivable on a with...
Finman company designated Jill Holland as pretty cash custodian and
established a pretty cash fund of 200$.
Problem 1 (25 points): The following transactions occurred in Mars Co. in 2019 1. Accounts receivable in the amount of $1,000,000 were assigned to Utley Finance Co. by Mars as security for a loan of $850,000. Utley charged a 3% commission on the accounts; the interest rate on the note is 12%. 2. During the first month, Mars collected $400,000 on assigned accounts...
Please solve.
PART 1 The following information is available for a company as of January 1, 2019: Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable (net) $300,000 (8,000) 292,000 The following events took place during 2019: 1. During the year, the company sold services for $600,000 cash and $2,800,000 on credit. 2. On December 31, a decision was made to estimate bad debts as 1% of credit sales. 3. Accounts Receivable of $3,000 from prior years was determined to be...
Problem S-18 (IAA) During the second year of operations, Fauna Company itself in financial dificulties. The entity decided t contin nue acpounts receivable as a means of obtaining cash to operations On July 1, 2019, the entity sold P1.500,000 of a receivable for cash proceeds of P1.390,000. No bad de allow ance was associated with these accounts. On December 15, 2019, the entity assigned the remainde the accounts receivable, P5.000,000 as of that date. ,s collateral on a P2,500,000, 12%...
Spalding Pointers Corporation expects to begin operations on January 1, 2019; it will operate as a specialty sales company that sells laser pointers over the Internet. Spalding expects sales in January 2019 to total $120,000 and to increase 5 percent per month in February and March. All sales are on account. Spalding expects to collect 70 percent of accounts receivable in the month of sale, 20 percent in the month following the sale, and 10 percent in the second month...
Most questions answered within 3 hours.
-
Now that this course has taken you on a journey of introduction
to the world of...
asked 34 minutes ago -
Given a regression sum of squares equal to 2373.59 and a total
sum of squares equal...
asked 48 minutes ago -
The sandwich maker of the EE-Cole-Eye Sandwich Truck was just
fired (for a reason described below)...
asked 2 hours ago -
Name the following coordination compounds using systematic
nomenclature.
1. [Co(H2O)6]Cl2:
2. [Cr(NH3)6](NO3)3:
3. K4[Fe(CN)6]:
4. Na[Au(CN)4]:...
asked 2 hours ago -
Propose an efficient synthesis of 2-Bromo-5-nitrotoluene from
benzene. Hint: 3 steps. Consider directing effects of substituents....
asked 4 hours ago -
This assignment will explore the impact of corporate decisions
on a local versus a global perspective....
asked 3 hours ago -
Given the function below, F(w,x,y,z)= x’z+w’z’+w’y
a) draw a logic diagram for an implementation which uses...
asked 3 hours ago -
Most political philosophers believe we have a duty to obey laws,
even if the laws in...
asked 4 hours ago -
Which of the following are common negotiation outcome
mistakes?
a. Leave money on the table b....
asked 4 hours ago -
Convert the following quantities:
a) 0.819 atm to torr b) 512 mmHg to bar c) 11.2...
asked 4 hours ago -
C ++ Implement cat command
The purpose of this assignment is to provide practice using the...
asked 4 hours ago -
we
convert sugars into another form of stored potential energy. This
is called?
asked 5 hours ago