Homework Answers
Answer:-
Kennedy company loaned $115000 on 1st September. So the accrued interest for 4 months is $4,600.
As accrued interest adjustment entry is to be made as at calendar year end December 31, the same would be as follows:-
Debit interest receivable $4,600 and credit Interest revenue $4,600.
Explanation:-
Interest receivable for 4 months is asset and hence it is to be debited and interest is revenue and hence it is to be credited.
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On September 1, Kennedy Company loaned $115,000, at 12% annual interest, to a customer Interest and...
Submit 00 On September 1, Kennedy Company loaned $115.000, at 12% annual resto a customer interest...
Submit 00 On September 1, Kennedy Company loaned $115.000, at 12% annual resto a customer interest and principe will be collected when the loan matures one year from the issue date. Assuming adjustments are only made at year-end, what is the adjusting entry for sccung test at Kennedy would need to make on December 31, the calendar year-end? Muit Choice Dubstec 34.600 rete 4,600 O resto 30.000 euros, 8.000 Debtret Beco 3.000 credit 30.000 Droit Cash 4.000 credit, 4600
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On September 1, Sapphire Company loaned $120,000, at 10% annual interest, to a customer. $12,000 of interest and and $120,000 principal will be collected when the loan matures one year from the issue date. $4,000 of interest had been earned by December 31. Assuming adjustments are only made at year-end, what is the adjusting entry for accruing interest that Sapphire would need to make on December 31, the calendar year-end?
On September 1, Sapphire Company loaned $120,000, at 10% annual interest, to a customer. $12,000 of...
On September 1, Sapphire Company loaned $120,000, at 10% annual interest, to a customer. $12,000 of interest and and $120,000 principal will be collected when the loan matures one year from the issue date. $4,000 of interest had been earned by December 31. Assuming adjustments are only made at year-end, what is the adjusting entry for accruing interest that Sapphire would need to make on December 31, the calendar year-end?
On December 1, Milton Company borrowed $460,000, at 9% annual interest, from the Tennessee National Bank....
On December 1, Milton Company borrowed $460,000, at 9% annual interest, from the Tennessee National Bank. Interest is paid when the loan matures one year from the issue date. What is the adjusting entry for accruing interest that Milton would need to make on December 31, the calendar year-end? Multiple Choice Ο debit Interest Payable, $3,450, credit Interest Expense, $3,450. Ο debit Interest Expense, $6,900; credit Interest Payable. $6,900. Ο debit Interest Expense. $41,400, credit Interest Payable. $41,400. Ο debit...
On November 1, Jasper Company loaned another company $100.000 at a 6.0% interest rate. The note...
On November 1, Jasper Company loaned another company $100.000 at a 6.0% interest rate. The note receivable plus interest will not be collected until March of the following year. The company's annual accounting period ends on December 31, and adjustments are only made at year-end. The adjusting entry needed on December 31 is: Multiple Choice No entry required Debit interest Expense,55,000 credit Interest Payable, $5,000 Debit interest Expense, $1000; credit Note Payable, $1,000, Debit interest Receivable, 5500 credit interest Revenue,...
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Mackenzie Company sold $580 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 4.0% service charge for sales on its credit cards. Mackenzie electronically remits the credit card sales receipts to the credit card company and receives payment immediately The journal entry to record this sale transaction would be: Multiple Choice O Debit Cash of $580 and credit Accounts Receivable-Regional $580. ) Debit Cash of $580 and credit Sales $580. ooooo Debit Accounts...
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Sheffield Company loaned $83,306 to Hemingway, Inc, accepting
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A company lends its supplier $175,000 for 3 years at a 7 % annual interest rate. Interest payments are to be made twice a year. The entry to record this lending transaction includes a debit to: Multiple Choice Notes Receivable and a credit to Cash for $175,000 Interest Receivable and a credit to Interest Revenue for $6,125 Cash and a credit to Interest Revenue for $12.250 Cash and a credit to Notes Payable for $175,000 Help Save & Wrangler Inc....
Submit 00 On September 1, Kennedy Company loaned $115.000, at 12% annual resto a customer interest and principe will be collected when the loan matures one year from the issue date. Assuming adjustments are only made at year-end, what is the adjusting entry for sccung test at Kennedy would need to make on December 31, the calendar year-end? Muit Choice Dubstec 34.600 rete 4,600 O resto 30.000 euros, 8.000 Debtret Beco 3.000 credit 30.000 Droit Cash 4.000 credit, 4600
MC Qu. 157 Chou Co. has a net income of... Chou Co. has a net income of $55,000, assets at the beginning of the year are $262,000 and assets at the end of the year are $312,000. Compute its return on assets. Multiple Choice Ο Ο Ο Ο MC Qu. 310 Use the information in the adjusted... Use the information in the adjusted trial balance presented below to calculate the current ratio for Taron Company: Account Title Cash R Accounts...
On December 1, Milton Company borrowed $460,000, at 9% annual interest, from the Tennessee National Bank. Interest is paid when the loan matures one year from the issue date. What is the adjusting entry for accruing interest that Milton would need to make on December 31, the calendar year-end? Multiple Choice Ο debit Interest Payable, $3,450, credit Interest Expense, $3,450. Ο debit Interest Expense, $6,900; credit Interest Payable. $6,900. Ο debit Interest Expense. $41,400, credit Interest Payable. $41,400. Ο debit...
On November 1, Jasper Company loaned another company $100.000 at a 6.0% interest rate. The note receivable plus interest will not be collected until March of the following year. The company's annual accounting period ends on December 31, and adjustments are only made at year-end. The adjusting entry needed on December 31 is: Multiple Choice No entry required Debit interest Expense,55,000 credit Interest Payable, $5,000 Debit interest Expense, $1000; credit Note Payable, $1,000, Debit interest Receivable, 5500 credit interest Revenue,...
Mackenzie Company sold $580 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 4.0% service charge for sales on its credit cards. Mackenzie electronically remits the credit card sales receipts to the credit card company and receives payment immediately The journal entry to record this sale transaction would be: Multiple Choice O Debit Cash of $580 and credit Accounts Receivable-Regional $580. ) Debit Cash of $580 and credit Sales $580. ooooo Debit Accounts...
Sheffield Company loaned $83,306 to Hemingway, Inc, accepting
Hemingway's 2-year, $100,800, zero-interest-bearing note. The
implied interest rate is 10%. Prepare Sheffield's journal entries
for the initial transaction, recognition of interest each year, and
the collection of $100,800 at maturity.
Account Titles and Explanation Debit Credit Notes Receivable 100800 Discount on Notes Receivable 17494 Cash 83306 (To record the receipt of the note at a discount.) Discount on Notes Receivable 8331 Interest Revenue 8331 (To record the interest revenue at the...
Help Save & Exit On April 12, Hong Company agrees to accept a 60-day, 7%, $9,600 note from Indigo Company to extend the due date on an overdue account. What is the journal entry that Indigo Company would make, when it records payment of the note on the maturity date? (Use 360 days a year.) Multiple Choice Debit Notes Payable $9.600, debit Interest Expense $112, credit Cash $9.712 Debit Cash $9.712, credit Interest Revenue $112, credit Notes Receivable $9,600 Debit...
A company lends its supplier $175,000 for 3 years at a 7 % annual interest rate. Interest payments are to be made twice a year. The entry to record this lending transaction includes a debit to: Multiple Choice Notes Receivable and a credit to Cash for $175,000 Interest Receivable and a credit to Interest Revenue for $6,125 Cash and a credit to Interest Revenue for $12.250 Cash and a credit to Notes Payable for $175,000 Help Save & Wrangler Inc....
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