ding inte ming Note Payable che On August 31, 2020, Pine Company issued a 9-month, 12%...
On August 31, 2020, Pine Company issued a 9-month, 12% note payable to National Bank in the amount of $180,000. Interest is due at maturity. Record the entries for Pine Company on the following dates. a. Issuance of the note on August 31, 2020. b. Adjusting entry on December 31, 2020, Pine Company's fiscal year-end. C. Payment of the note payable on May 31, 2021. Note: List multiple debits or credits (when applicable) in alphabetical order. Date Account Name Dr....
First Choice Company buys equipment on October 1, 2020, providing as payment a noninterest-bearing note for $12,000 to be paid one year from today. The equipment could be purchased for $10,909 in cash today. Record the entries for First Choice Company on the following dates. a. Issuance of the note on October 1, 2020. b. Adjusting entry on December 31, 2020, First Choice Company's fiscal year-end. Amortize the discount on the note using the straight-line method. c. Payment of the...
First Choice Company buys equipment on October 1, 2020, providing as payment a noninterest-bearing note for $12,000 to be paid one year from today. The equipment could be purchased for $10,909 in cash today. Record the entries for First Choice Company on the following dates. a. Issuance of the note on October 1, 2020. b. Adjusting entry on December 31, 2020, First Choice Company's fiscal year-end. Amortize the discount on the note using the straight-line method. c. Payment of the...
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Recording Noninterest-Bearing Note Payable Entries First Choice Company buys equipment on October 1, 2020, providing as payment a noninterest-bearing note for $32,000 to be paid one year from today. The equipment could be purchased for $29,091 in cash today. Record the entries for First Choice Company on the following dates. a. Issuance of the note on October 1, 2020. b. Adjusting entry on December 31, 2020, First Choice Company's fiscal year-end....
Recording a Note Payable Issued for Non-Cash Consideration On January 1, 2020, Jet Air Inc. contracted with Systems Plus Inc. to manufacture heavy equipment. Jet Air Inc. issued a $22,500 note to Systems Plus Inc. in exchange for the equipment that required 5% interest payments annually over 3 years on December 31 of each year. Although the fair value of the customized heavy equipment was not reasonably determinable, it was determined that 10% was a reasonable rate of interest for...
On October 1, 2020, New Co. issued an eight-year, 6%, $5,500 bond at face value, with cash interest payable semiannually on April 1 and October 1. Provide journal entries to be made by New Co. at each of the following dates. a. October 1, 2020-Issuance. b. December 31, 2020-Interest expense adjusting entry. C. April 1, 2021—Interest payment. • Note: List multiple debits or credits (when applicable) in alphabetical order. • Note: Round your answers to the nearest whole dollar. Account...
The face value of commercial paper borrowings at December 31, 2020, was $5 million. The six-month loan originated on September 1, 2020. a. Prepare the journal entry for issuance of the loan on September 1, 2020, assuming that the loan is discounted at 5.7%. Hint: Discount on Note Payable is equal to 6 months of interest. b. Prepare the adjusting entry at December 31, 2020. Amortize the discount on the note using the straight-line method. c. Prepare the entry to...
Recording a Note Payable Issued for Non-Cash Consideration On January 1, 2020, Jet Air Inc. contracted with Systems Plus Inc. to manufacture heavy equipment. Jet Air Inc. issued a $90,000 note to Systems Plus Inc. in exchange for the equipment that required 5% interest payments annually over 3 years on December 31 of each year. Although the fair value of the customized heavy equipment was not reasonably determinable, it was determined that 10% was a reasonable rate of interest for...
Computing Installment Payment on Note Payable On January 1, 2020, a borrower signed a long-term note, face amount $90,000 with time to maturity of 6 years. The interest rate is 79 and equal annual installment payments will pay off the loan after six years. a. How much is each annual installment payment? • Note: Do not use a negative sign with your answer. • Note: Round your answer to the nearest whole dollar. $ 32,131 b. Record the first installment...
Recording a Note Payable OT NOIR Consideration On January 1, 2020. Jet Air Inc. contracted with Systems Plus Inc. to manufacture heavy equipment. Jet Air Inc issued a $22.500 note to Systems Plus Inc in exchange for the equipment that required interest payments annually over 3 years on December 31 of each year. Although the fair value of the customized heavy equipment was not reasonably determinable, it was determined that 10% was a reasonable rate of interest for such a...