Journal entry
Date | account and explanation | debit |
Credit |
Nov 1 | Cash | 6800000 | |
Notes payable | 6800000 | ||
(To record borrowing) | |||
Dec 31 | Interest expense (6800000*7.5%*2/12) | 85000 | |
Interest payable | 85000 | ||
(To record accrued interest) | |||
Apr 30 | Notes payable | 6800000 | |
Interest payable | 85000 | ||
Interest expense | 170000 | ||
Cash | 7055000 | ||
(To record amount paid) | |||
Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable....
Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mitt builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt's sales are on credit. As a result, Mitt often collects cash from its sales several months after Christmas. Assume on November 1, 2018, Mitt borrowed $8.4 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The...
Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mitt builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt's sales are on credit. As a result, Mitt often collects cash from its sales several months after Christmas. Assume on November 1, 2018, Mitt borrowed $8.1 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The...
Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mitt builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt's sales are on credit. As a result, Mitt often collects cash from its sales several months after Christmas. Assume on November 1, 2018, Mitt borrowed $8.0 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The...
Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mitt builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt's sales are on credit. As a result, Mitt often collects cash from its sales several months after Christmas. Assume on November 1, 2018, Mitt borrowed $8.0 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The...
Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mitt builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt's sales are on credit. As a result, Mitt often collects cash from its sales several months after Christmas. Assume on November 1, 2018, Mitt borrowed $7.2 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The...
Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mattel builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mattel's sales are on credit. As a result, Mattel often collects cash from its sales several months after Christmas. Assume on November 1, 2018, Mattel borrowed $6 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The...
Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mitt builds up its inventory to meet the needs of retailers selling to Christmas shoppers A large portion of Mi's sales are on credit. As a result, Mitt often collects cash from its sales several months after Christmas Assume on November 1, 2018 Mitt borrowed $6 8 m on cash from Metropolitan Bank and signed a promissory note that matures in six...
Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. Hudson's Bay Company (HBC) is Canada's largest department store. Each Christmas, HBC builds up its inventory to meet the needs of Christmas shoppers. A large portion of Christmas sales are on credit. As a result, HBC often collects cash from the sales several months after Christmas. Assume that on November 1, 2017, HBC borrowed $7.5 million cash from Downtown Bank and signed a promissory...
Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. FederalWay, Inc., is one of America's most prestigious retailers. Each Christmas season, FederalWay builds up its inventory to meet the needs of Christmas shoppers. A large portion of these Christmas sales are on credit. As a result, FederalWay often collects cash from the sales several months after Christmas. Assume that on November 1 of this year, FederalWay borrowed $4.7 million cash from Third Fifth...
E10-2 Recording a Note Payable through Its Time to Maturity (LO 10-2] Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mitt builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt's sales are on credit. As a result, Mitt often collects cash from its sales several months after Christmas. Assume on November 1, 2018, Mitt borrowed $7.7 million cash from Metropolitan...