Homework Answers
Cost of the Asset = $ 17000
Own Funds = $ 5000
Borrowed Funds = $12000 @ 5% for 3 years
Repayment Schedule
Year Opening Balance Interest Principal Repayment Total Payment Closing Balance
May 2021 12000 300 2000 2300 10000
Nov 2021 10000 250 2000 2250 8000
May 2022 8000 200 2000 2200 6000
Nov 2022 6000 150 2000 2150 4000
May 2023 4000 100 2000 2100 2000
Nov 2023 2000 50 2000 2050 0
Journal Entries
Plant & Machinery A/c Dr 17000
To Cash A/c 5000
To Loan A/c 12000
For Interest due entry
Interest A/c Dr 300
To Loan A/c 300
For Interest and Principal Repayment Entry
Loan A/c Dr 2300
To Bank/Cash A/c 2300
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vuston Natalie and Curtis have been experiencing great demand for their cookies and muffins. As a...
Natalie and Curtis have been experiencing great demand for their cookies and muffins. As a result,...
Natalie and Curtis have been experiencing great demand for their cookies and muffins. As a result, they are now thinking about buying a commercial oven. They know which oven they want and that it will cost $17,000. The company already has $5,000 set aside for the purchase and will need to borrow the rest. Natalie and Curtis met with a bank manager to discuss their options. She is willing to lend Cookie & Coffee Creations Inc. $12,000 on November 1,...
NEXT HT RESOURCES а соне Natalie and Curtis met with a bank manager to discuss their...
NEXT HT RESOURCES а соне Natalie and Curtis met with a bank manager to discuss their options. She is willing to lend Cookie & Coffee Creations Inc. $12,000 on November 1, 2020, for a period of 3 years at a 5% Interest rate. The terms provide for flored principal payments of $2,000, on May 1 and November 1 of each year plus 6 months of interest. Your answer is partially correct. Try again. sults by Study Prepare a payment schedule...
Question 1 Natalie's friend, Curtis Lesperance, decides to meet with Natalie after hearing that her discussions...
Question 1 Natalie's friend, Curtis Lesperance, decides to meet with Natalie after hearing that her discussions about a possible business partnership with her friend Katy Peterson have failed. (Natalie had decided that forming a partnership with Katy, a high school friend, would hurt their friendship. Natalie had also concluded that she and Katy were not compatible to operate a business venture together.) Because Natalie has been so successful with Continuing Cookie Chronicle and Curtis has been just as successful with...
After establishing their company's fiscal year-end to be October 31, Natalie and Curtis begin operating Cookie...
After establishing their company's fiscal year-end to be October 31, Natalie and Curtis begin operating Cookie & Coffee Creations Inc. on November 1, 2020. On that date, after the issuance of shares, the paid-in capital section of the company's balance sheet is as follows. Paid-in capital Preferred stock, s0.50 noncumulative, no par value. 10,000 shares authorized, 2,000 issued $10,000 Common stock, no par value, 100,000 shares authorized, 25,930 issued 25,930 Cookie & Coffee Creations then has the following selected transactions...
Golden Inc. issues $4,000,000, 5-year, 10% bonds at 102, with interest payable annually on January 1...
Golden Inc. issues $4,000,000, 5-year, 10% bonds at 102, with interest payable annually on January 1 . The straight-line method is used to amortize bond premium Your answer is partially correct. Try again Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. D not indent manually.) Date Account Titles and Explanation Jan. 1 Cash Debit Credit 38000000 Discount on Bonds Payable 2000000 Bonds Payable...
Question 2 After establishing their company's fiscal year-end to be October 31, Natalie and Curtis begin...
Question 2 After establishing their company's fiscal year-end to be October 31, Natalie and Curtis begin operating Cookie & Coffee Creations Inc. on November 1, 2020. On that date, after the issuance of shares, the paid-in capital section of the company's balance sheet is as follows. Paid-in capital Preferred stock, $0.50 noncumulative, no par value, 10,000 shares authorized, 2,000 issued Common stock, no par value, 100,000 shares authorized, 25,930 issued $10,000 25,930 Cookie & Coffee Creations then has the following...
Brief Exercise 10-4 Fischer Company borrowed $47,280 from National bank on August 1 for three months;...
Brief Exercise 10-4 Fischer Company borrowed $47,280 from National bank on August 1 for three months; 5% interest is payable the first of each month, starting September 1. Fischer's year end is September 30 and the company records adjusting entries only at that time. Your answer is correct. Prepare a journal entry to record the receipt of the bank loan on August 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account...
Kingbird, Inc. issued 3,300,7%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid...
Kingbird, Inc. issued 3,300,7%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1. Your answer is partially correct. Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 cash Bonds Payable e Textbook and Media List of Accounts Your answer is partially correct. Prepare the adjusting...
The following section is taken from Sheridan Corp.'s balance sheet at December 31, 2019 Current liabilities...
The following section is taken from Sheridan Corp.'s balance sheet at December 31, 2019 Current liabilities $ 134,550 Interest payable Long-term liabilities Bonds payable, 9%, due January 1, 2024 1,495,000 Bond interest is payable annually on January 1. The bonds are callable on any interest date. Your answer is correct. Journalize the payment of the bond interest on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles andExplanation Debit...
Exercise 10-15 Bonita Corporation purchased a computer on December 31, 2019, for $157,500, paying $45,000 down...
Exercise 10-15 Bonita Corporation purchased a computer on December 31, 2019, for $157,500, paying $45,000 down and agreeing to pay the balance in five equal installments of $22,500 payable each December 31 beginning in 2020. An assumed interest rate of 9% is implicit in the purchase price. Your answer is partially correct. Try again. Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g....
NEXT HT RESOURCES а соне Natalie and Curtis met with a bank manager to discuss their options. She is willing to lend Cookie & Coffee Creations Inc. $12,000 on November 1, 2020, for a period of 3 years at a 5% Interest rate. The terms provide for flored principal payments of $2,000, on May 1 and November 1 of each year plus 6 months of interest. Your answer is partially correct. Try again. sults by Study Prepare a payment schedule...
Question 1 Natalie's friend, Curtis Lesperance, decides to meet with Natalie after hearing that her discussions about a possible business partnership with her friend Katy Peterson have failed. (Natalie had decided that forming a partnership with Katy, a high school friend, would hurt their friendship. Natalie had also concluded that she and Katy were not compatible to operate a business venture together.) Because Natalie has been so successful with Continuing Cookie Chronicle and Curtis has been just as successful with...
After establishing their company's fiscal year-end to be October 31, Natalie and Curtis begin operating Cookie & Coffee Creations Inc. on November 1, 2020. On that date, after the issuance of shares, the paid-in capital section of the company's balance sheet is as follows. Paid-in capital Preferred stock, s0.50 noncumulative, no par value. 10,000 shares authorized, 2,000 issued $10,000 Common stock, no par value, 100,000 shares authorized, 25,930 issued 25,930 Cookie & Coffee Creations then has the following selected transactions...
Golden Inc. issues $4,000,000, 5-year, 10% bonds at 102, with interest payable annually on January 1 . The straight-line method is used to amortize bond premium Your answer is partially correct. Try again Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. D not indent manually.) Date Account Titles and Explanation Jan. 1 Cash Debit Credit 38000000 Discount on Bonds Payable 2000000 Bonds Payable...
Question 2 After establishing their company's fiscal year-end to be October 31, Natalie and Curtis begin operating Cookie & Coffee Creations Inc. on November 1, 2020. On that date, after the issuance of shares, the paid-in capital section of the company's balance sheet is as follows. Paid-in capital Preferred stock, $0.50 noncumulative, no par value, 10,000 shares authorized, 2,000 issued Common stock, no par value, 100,000 shares authorized, 25,930 issued $10,000 25,930 Cookie & Coffee Creations then has the following...
Brief Exercise 10-4 Fischer Company borrowed $47,280 from National bank on August 1 for three months; 5% interest is payable the first of each month, starting September 1. Fischer's year end is September 30 and the company records adjusting entries only at that time. Your answer is correct. Prepare a journal entry to record the receipt of the bank loan on August 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account...
Kingbird, Inc. issued 3,300,7%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1. Your answer is partially correct. Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 cash Bonds Payable e Textbook and Media List of Accounts Your answer is partially correct. Prepare the adjusting...
The following section is taken from Sheridan Corp.'s balance sheet at December 31, 2019 Current liabilities $ 134,550 Interest payable Long-term liabilities Bonds payable, 9%, due January 1, 2024 1,495,000 Bond interest is payable annually on January 1. The bonds are callable on any interest date. Your answer is correct. Journalize the payment of the bond interest on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles andExplanation Debit...
Exercise 10-15 Bonita Corporation purchased a computer on December 31, 2019, for $157,500, paying $45,000 down and agreeing to pay the balance in five equal installments of $22,500 payable each December 31 beginning in 2020. An assumed interest rate of 9% is implicit in the purchase price. Your answer is partially correct. Try again. Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g....
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