Homework Answers
as it is Zero interest bearing note the interest is already included in the note amount and the interest revenue is recognised at prevailing market rate on the date of issue of note i.e., 6.60% & 6.60% Option D.
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Testbank Multiple Choice Question 112 Sage H Company received a seven-year zero interest-bearing note on February...
Sheffield Inc. had the following long-term receivable account balances at December 31, 2019. Note receivable from...
Sheffield Inc. had the following long-term receivable account balances at December 31, 2019. Note receivable from sale of division $2,400,000 Note receivable from officer 495,100 Transactions during 2020 and other information relating to Sheffield’s long-term receivables were as follows. 1. The $2,400,000 note receivable is dated May 1, 2019, bears interest at 10%, and represents the balance of the consideration received from the sale of Sheffield’s electronics division to New York Company. Principal payments of $800,000 plus appropriate interest are...
WILL RATE FAST: P14.8B (LO 3) (Entries for Zero-Interest-Bearing Note) On December 31, 2020, Payson Company...
WILL RATE FAST:
P14.8B (LO 3) (Entries for Zero-Interest-Bearing Note) On December 31, 2020, Payson Company acquired a press from Sugar Corporation by issuing a $400,000 zero-interest-bearing note, payable in full on December 31, 2023. Payson's credit rating permits it to borrow funds from its several lines of credit at 8%. The press is expected to have a 6-year life and a $40,000 salvage value. Round amounts to the nearest dollar. Instructions (a) Prepare the journal entry for the purchase...
Sunland Corporation borrowed $55,200 on November 1, 2020, by signing a $56,490, 3-month, zero-interest-bearing note. Prepare...
Sunland Corporation borrowed $55,200 on November 1, 2020, by signing a $56,490, 3-month, zero-interest-bearing note. Prepare Sunland's November 1, 2020, entry; the December 31, 2020, annual adjusting entry, and the February 1, 2021, entry. (if no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Concord Corporation issued a 5-year, $82,000, zero-interest-bearing note to Brown Company on January 1, 2020, and...
Concord Corporation issued a 5-year, $82,000, zero-interest-bearing note to Brown Company on January 1, 2020, and received cash of $48,663. The implicit interest rate is 11%. Prepare Concord’s journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest.
Larkspur Corporation issued a 4-year, $81,000, zero-interest-bearing note to Brown Company on January 1, 2020, and...
Larkspur Corporation issued a 4-year, $81,000, zero-interest-bearing note to Brown Company on January 1, 2020, and received cash of $46,312. The implicit interest rate is 15%. Prepare Larkspur's journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest. (Round answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered....
Monty Corporation issued a 5-year. $78.000, zero-interest-bearing note to Brown Company on January 1, 2020, and...
Monty Corporation issued a 5-year. $78.000, zero-interest-bearing note to Brown Company on January 1, 2020, and received cash of $38,780. The implicit interest rate is 15%. Prepare Monty's journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest. (Round answers to o decimal places, eg. 38,548. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do...
Carla Inc. had the following long-term receivable account balances at December 31, 2019. Note receivable from...
Carla Inc. had the following long-term receivable account balances at December 31, 2019. Note receivable from sale of division $2,400,000 Note receivable from officer 495,100 Transactions during 2020 and other information relating to Carla's long-term receivables were as follows. 1. The $2,400,000 note receivable is dated May 1, 2019, bears interest at 10%, and represents the balance of the consideration received from the sale of Carla's electronics division to New York Company. Principal payments of $800,000 plus appropriate interest are...
Brief Exercise 14-11 Samson Corporation issued a 4-year, $75,000, zero-interest-bearing note to Brown Company on January...
Brief Exercise 14-11 Samson Corporation issued a 4-year, $75,000, zero-interest-bearing note to Brown Company on January 1, 2020, and received cash of $47,664. The implicit interest rate is 12% Prepare Samson's journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter o for the amounts, Credit account titles are automatically indented when...
Current Attempt in Progress Blossom Company issued a five-year interest-bearing note payable for $354000 on January...
Current Attempt in Progress Blossom Company issued a five-year interest-bearing note payable for $354000 on January 1, 2019. Each January the company is required to pay $71000 on the note. How will this note be reported on the December 31, 2020, balance sheet? O Long-term debt, $354000 O Long-term debt, $212000; Long-term Debt due within one year, $71000 O Long-term debt of $283000; Long-term Debt due within one year, $71000 O Long-term debt, $283000
Sweet Inc. had the following long-term receivable account balances at December 31, 2019. Note receivable from...
Sweet Inc. had the following long-term receivable account balances at December 31, 2019. Note receivable from sale of division $1,200,000 Note receivable from officer 491,300 Transactions during 2020 and other information relating to Sweet’s long-term receivables were as follows. 1. The $1,200,000 note receivable is dated May 1, 2019, bears interest at 10%, and represents the balance of the consideration received from the sale of Sweet’s electronics division to New York Company. Principal payments of $400,000 plus appropriate interest are...
WILL RATE FAST:
P14.8B (LO 3) (Entries for Zero-Interest-Bearing Note) On December 31, 2020, Payson Company acquired a press from Sugar Corporation by issuing a $400,000 zero-interest-bearing note, payable in full on December 31, 2023. Payson's credit rating permits it to borrow funds from its several lines of credit at 8%. The press is expected to have a 6-year life and a $40,000 salvage value. Round amounts to the nearest dollar. Instructions (a) Prepare the journal entry for the purchase...
Larkspur Corporation issued a 4-year, $81,000, zero-interest-bearing note to Brown Company on January 1, 2020, and received cash of $46,312. The implicit interest rate is 15%. Prepare Larkspur's journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest. (Round answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered....
Monty Corporation issued a 5-year. $78.000, zero-interest-bearing note to Brown Company on January 1, 2020, and received cash of $38,780. The implicit interest rate is 15%. Prepare Monty's journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest. (Round answers to o decimal places, eg. 38,548. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do...
Carla Inc. had the following long-term receivable account balances at December 31, 2019. Note receivable from sale of division $2,400,000 Note receivable from officer 495,100 Transactions during 2020 and other information relating to Carla's long-term receivables were as follows. 1. The $2,400,000 note receivable is dated May 1, 2019, bears interest at 10%, and represents the balance of the consideration received from the sale of Carla's electronics division to New York Company. Principal payments of $800,000 plus appropriate interest are...
Brief Exercise 14-11 Samson Corporation issued a 4-year, $75,000, zero-interest-bearing note to Brown Company on January 1, 2020, and received cash of $47,664. The implicit interest rate is 12% Prepare Samson's journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter o for the amounts, Credit account titles are automatically indented when...
Current Attempt in Progress Blossom Company issued a five-year interest-bearing note payable for $354000 on January 1, 2019. Each January the company is required to pay $71000 on the note. How will this note be reported on the December 31, 2020, balance sheet? O Long-term debt, $354000 O Long-term debt, $212000; Long-term Debt due within one year, $71000 O Long-term debt of $283000; Long-term Debt due within one year, $71000 O Long-term debt, $283000
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