Novak Corp. borrowed $1500000 from National Bank on May 31, 2019. The 3-year, 7% note required...
Novak Corp. borrowed $1500000 from National Bank on May 31, 2019. The 3-year, 7% note required annual payments of $571577 beginning May 31, 2020. Interest expense for the year ended December 31, 2019 was
|
$61250. |
|
$70000. |
|
$105000. |
|
$0. |
2-4-5
Homework Answers
Interest expense for 7 months from May 31st to December 31st:
= $1,500,000 X 7% X 7/12
= $61,250
1st option
Add Answer to:
Novak Corp. borrowed $1500000 from National Bank on May 31,
2019. The 3-year, 7% note required...
Perez Company borrowed $54,000 from the First National Bank on June 1, 2019, on a 3-year,...
Perez Company borrowed $54,000 from the First National Bank on June 1, 2019, on a 3-year, 8.7% note. Interest is paid annually on May 31. If required, round amounts to the nearest dollar. Required: 1. Record the borrowing transaction in Perez's journal 2019. June 1 Record issuance of note at par 2. Prepare the adjusting entries made at December 31, 2019 and 2020. 2019. December 31 Record interest expense 2020. December 31 Record interest expense 3. Prepare the necessary journal...
On January 1, 2019, Novak Corp. issued $3,020,000 face value, 9%, 10-year bonds at $3,222,644. This...
On January 1, 2019, Novak Corp. issued $3,020,000 face value,
9%, 10-year bonds at $3,222,644. This price resulted in an
effective-interest rate of 8% on the bonds. Novak uses the
effective-interest method to amortize bond premium or discount. The
bonds pay annual interest on each January 1.
Prepare the journal entries to record the following
transactions. (Round answers to 0 decimal places, e.g.
15,250. Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
(1)
The...
Sunland Company borrowed $2240000 from U.S. Bank on January 1, 2019 in order to expand its...
Sunland Company borrowed $2240000 from U.S. Bank on January 1, 2019 in order to expand its mining capabilities. The 5-year note required annual payments of $583378 and carried an annual interest rate of 9.5%. What is the balance in the notes payable account at December 31, 2020, after the annual payment? $1814400 $2240000 $1463639 $1869422 2-4-4
On December 31, 2019, Novak Inc. borrowed $3,300,000 at 13% payable annually to finance the construction...
On December 31, 2019, Novak Inc. borrowed $3,300,000 at 13% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $396,000; June 1, $660,000; July 1, $1,650,000; December 1, $1,650,000. The building was completed in February 2021. Additional information is provided as follows. 1. Other debt outstanding 10-year, 14% bond, December 31, 2013, interest payable annually $4,400,000 6-year, 11% note, dated December 31, 2017, interest payable...
On December 31, 2020, Pharoah Company signed a $1,132,500 note to Novak Bank. The market interest...
On December 31, 2020, Pharoah Company signed a $1,132,500 note to Novak Bank. The market interest rate at that time was 10%. The stated interest rate on the note was 8%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Pharoah’s financial situation worsened. On December 31, 2022, Novak Bank determined that it was probable that the company would pay back only $679,500 of the principal at maturity. However, it was considered likely that interest would...
On 1/1/X1, Gerri Corp. borrowed $450,000 by agreeing to a 9%, 9-year installment note with the...
On 1/1/X1, Gerri Corp. borrowed $450,000 by agreeing to a 9%, 9-year installment note with the bank. The note's proceeds will eventually be used to purchase a building. The journal entry to record the note is already shown in the journal below The note will be paid back in nine equal annual installment payments of $ 75,059 on December 31 of each year beginning December 31, 20X1 Required: Using the above information, prepare the journal entries to record the first...
On December 31, 2019, Novak Inc. borrowed $4,020,000 at 13% payable annually to finance the construction...
On December 31, 2019, Novak Inc. borrowed $4,020,000 at 13% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $482,400; June 1, $804,000; July 1, $2,010,000; December 1, $2,010,000. The building was completed in February 2021. Additional information is provided as follows. 1. Other debt outstanding 10-year, 14% bond, December 31, 2013, interest payable annually 6-year, 11% note, dated December 31, 2017, interest payable annually...
On December 31, 2020, Pharoah Company signed a $1,056,900 note to Novak Bank. The market interest...
On December 31, 2020, Pharoah Company signed a $1,056,900 note
to Novak Bank. The market interest rate at that time was 10%. The
stated interest rate on the note was 8%, payable annually. The note
matures in 5 years. Unfortunately, because of lower sales,
Pharoah’s financial situation worsened. On December 31, 2022, Novak
Bank determined that it was probable that the company would pay
back only $634,140 of the principal at maturity. However, it was
considered likely that interest would...
On December 31, 2019, Novak Inc. borrowed $4,020,000 at 13% payable annually to finance the construction...
On December 31, 2019, Novak Inc. borrowed $4,020,000 at 13% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $482,400; June 1, $804,000; July 1, $2,010,000; December 1, $2,010,000. The building was completed in February 2021. Additional information is provided as follows. 1. Other debt outstanding 10-year, 14% bond, December 31, 2013, interest payable annually $5,360,000 6-year, 11% note, dated December 31, 2017, interest payable...
Abardeen Corporation borrowed $105,000 from the bank on October 1, 2018. The note had an 7...
Abardeen Corporation borrowed $105,000 from the bank on October 1, 2018. The note had an 7 percent annual rate of interest and matured on March 31, 2019. Interest and principal were paid in cash on the maturity date. Required a. What amount of cash did Abardeen pay for interest in 2018? b. What amount of interest expense was recognized on the 2018 income statement? c. What amount of total liabilities was reported on the December 31, 2018, balance sheet? d....
Perez Company borrowed $54,000 from the First National Bank on June 1, 2019, on a 3-year, 8.7% note. Interest is paid annually on May 31. If required, round amounts to the nearest dollar. Required: 1. Record the borrowing transaction in Perez's journal 2019. June 1 Record issuance of note at par 2. Prepare the adjusting entries made at December 31, 2019 and 2020. 2019. December 31 Record interest expense 2020. December 31 Record interest expense 3. Prepare the necessary journal...
On January 1, 2019, Novak Corp. issued $3,020,000 face value,
9%, 10-year bonds at $3,222,644. This price resulted in an
effective-interest rate of 8% on the bonds. Novak uses the
effective-interest method to amortize bond premium or discount. The
bonds pay annual interest on each January 1.
Prepare the journal entries to record the following
transactions. (Round answers to 0 decimal places, e.g.
15,250. Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
(1)
The...
On 1/1/X1, Gerri Corp. borrowed $450,000 by agreeing to a 9%, 9-year installment note with the bank. The note's proceeds will eventually be used to purchase a building. The journal entry to record the note is already shown in the journal below The note will be paid back in nine equal annual installment payments of $ 75,059 on December 31 of each year beginning December 31, 20X1 Required: Using the above information, prepare the journal entries to record the first...
On December 31, 2019, Novak Inc. borrowed $4,020,000 at 13% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $482,400; June 1, $804,000; July 1, $2,010,000; December 1, $2,010,000. The building was completed in February 2021. Additional information is provided as follows. 1. Other debt outstanding 10-year, 14% bond, December 31, 2013, interest payable annually 6-year, 11% note, dated December 31, 2017, interest payable annually...
On December 31, 2020, Pharoah Company signed a $1,056,900 note
to Novak Bank. The market interest rate at that time was 10%. The
stated interest rate on the note was 8%, payable annually. The note
matures in 5 years. Unfortunately, because of lower sales,
Pharoah’s financial situation worsened. On December 31, 2022, Novak
Bank determined that it was probable that the company would pay
back only $634,140 of the principal at maturity. However, it was
considered likely that interest would...
On December 31, 2019, Novak Inc. borrowed $4,020,000 at 13% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $482,400; June 1, $804,000; July 1, $2,010,000; December 1, $2,010,000. The building was completed in February 2021. Additional information is provided as follows. 1. Other debt outstanding 10-year, 14% bond, December 31, 2013, interest payable annually $5,360,000 6-year, 11% note, dated December 31, 2017, interest payable...
Abardeen Corporation borrowed $105,000 from the bank on October 1, 2018. The note had an 7 percent annual rate of interest and matured on March 31, 2019. Interest and principal were paid in cash on the maturity date. Required a. What amount of cash did Abardeen pay for interest in 2018? b. What amount of interest expense was recognized on the 2018 income statement? c. What amount of total liabilities was reported on the December 31, 2018, balance sheet? d....
Most questions answered within 3 hours.
-
Calculate the change in the Gibbs energy of the system for the
following processes: a) 6.0...
asked 44 seconds ago -
A solution is prepared by dissolving 11.60 g of a mixture of
sodium carbonate and sodium...
asked 9 minutes ago -
1. Mini Case Study: Suppose that, in the future, most jobs will
be bid upon by...
asked 12 minutes ago -
After reading the Primary Care scenario in the Allied Health
Community, what could have been implemented...
asked 5 minutes ago -
Plantinga argues for the view that there is no solution to the
problem of moral evil....
asked 7 minutes ago -
For this Discussion, you examine a case study of
hearing-impaired children who developed their own language...
asked 12 minutes ago -
At the beginning of the year, Palermo Brothers, Inc., purchased
a new plastic water bottle making...
asked 10 minutes ago -
You could argue that even though Rockefeller clearly had
enormous market power (90% of the market)...
asked 11 minutes ago -
The moment of inertia of a disk rotating about its axis of
symmetry is Icm=1/2MR^2
The...
asked 19 minutes ago -
When using a relational database what makes data
formatting so important and critical to the functions...
asked 30 minutes ago -
The following temperatures show the (fictional) daily low
measured at O'Hare airport every January 1st from...
asked 50 minutes ago -
Your friend is interested in the characteristics of fast tree
planters. He searched through the records...
asked 57 minutes ago