Answer: B) $ 2,250
Face Value of the note = 50,000
Interest Rate Per annum = 9%
Interest received on Maturity = 50,000 *9%*6/12 = $2,250
Question Help On August 1, 2018, Avonette, Inc., sold equipment and accepted a six-month maturity date...
Question Help On August 1, 2018, Avonette, Inc., sold equipment and accept maturity date (February 1, 2019) six-month, 9%, $50,000 note receivable. How much interest does Avonette expect to collect on the O A $3,050 O B. $2,250 OC. $375 OD. $4,500
Eneroso Determine the maturity date for each of the following notes: Maturity Date Issue Date 2018 January 13 2018 January 31 2018 June 4 2018 December 2 Ufe 30 days 90 days 1 year 1 month 9 Exercise H Crawford, Inc., gave a $20,000, 120-day, 12 per cent note to Dunston, Inc., in exchange for merchandise. Crawford uses periodic Inventory procedure. Prepare journal entries to record the issuance of the note and the entries needed at maturity for Crawford, assuming...
Q3/ On November 1, 2018, Lawn Inc. accepted a three-month, 9%, $69,600 note from Sipacore Inc. in settlement of its account. Interest is due on the first day of each month, starting December 1. Both companies’ year ends are December 31 A/ Prepare all journal entries for Lawn over the term of the note. Assume that the note is collected in full on the maturity date. (Credit account titles are automatically indented when amount is entered. Do not indent manually....
On August 1, 2019, The Cove at Mill Lake, Inc., purchased inventory costing $50,000 by signing a 6%, six-month, short-term note payable. The company will pay the entire note (principal and interest) on the note's maturity date. Read the requirements. Requirement 1. Journalize the company's purchase of inventory. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Accounts Date Debit Credit 2019 Aug 1 Requirement 2. Make the adjusting entry for accrual of interest on the note...
Auerbach Inc. issued 8% bonds on October 1, 2018. The bonds have a maturity date of September 30, 2028 and a face value of $375 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2019. The effective interest rate established by the market was 10%. Assuming that Auerbach issued the bonds for $328,266,900, what interest expense would it recognize in its 2018 income statement?
wurst. Incorporated sold its 8% bonds with a maturity value of $4.500.000 on August 1, 2018 for 119,000. At the time of the sale the bonds had 5 years until they reached maturity. Interest on the bands is payable semiannually on August 1 and February 1. The bonds are called at a price of 103 on August 1, 2020. Assume the Hurst used straight-line amortization Prepare the journal entry to record the bond call. (2 points) Date Account Titles Debit...
Problem 2(20 points) On September 1, 2018, Smit Co. received a 12%, six-month note receivable in settlement of accounts receivable of $320,000. Smit Co. insists that any customer who fails to pay an account receivable when due must replace their unpaid account receivable with an interest-bearing note receivable. Assume the company makes adjusting entries for accrued interest revenue once a year on December 31. Journalize the following events on the books of Smit Co.: 1. Record the receipt of the...
14./15.
On January 1, 2018, Allgood Company purchased equipment and signed a six-year mortgage note for $80,000 at 15%. The note will be paid in equal annual installments of $21,139, beginning January 1, 2019. Calculate the portion of interest expense paid on the third installment. (Round your answer to the nearest whole number.) O A. $21,139 OB. $70,861 O c. $9,053 OD. $12,000 On January 1, 2018, Westside Sales issued $15,000 in bonds for $16,800. These are eight-year bonds with...
1-Auerbach Inc. issued 8% bonds on October 1, 2018. The bonds have a maturity date of September 30, 2028 and a face value of $375 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2019. The effective interest rate established by the market was 10%. Assuming that Auerbach issued the bonds for $328,266,900, what interest expense would it recognize in its 2018 income statement? 2-Auerbach Inc. issued 6% bonds on October 1, 2018. The bonds...
Notes Receivable On September 1, 2017, Seacrest Inc, accepted a six-month, $48,600 interest-bearing note from Delgado Enterprises in payment of an account receivable. Seacrest's year-end is December 31. Delgado paid the note and interest on the due date. Assume 360 days in the year, Required: 1. Who is the maker and who is the payee of the note? The makers Seacrest Inc. and the payee is Delgado Enterprises 2. What is the maturity date of the note> March 1, 2018...