Accounts: Cash, Interest Revenue, Sales Revenue, Notes Receivable, Discount on Note Receivable
Homework Answers
| Date | Account | Debit | Credit |
| Jan 1 | Notes Receivable | 20,000 | |
| Sales revenue | 20,000 | ||
| Dec 31 | Cash | 22,000 | |
| Interest revenue (20,000*10%) | 2,000 | ||
| Notes Receivable | 20,000 | ||
.
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Accounts: Cash, Interest Revenue, Sales Revenue, Notes
Receivable, Discount on Note Receivable
Problem 6 (sale with...
D E A B с Problem 6 (sale with time value of money, IR] On January...
D E A B с Problem 6 (sale with time value of money, IR] On January 1, 2020, ABC sold and delivered a product to XYZ. ABC allows XYZ to delay payment for twelve months, at which time XYZ will pay ABC $20,000. ABC deems the financing component of the transaction to be significant and decides that an applicable interest rate is 10%. Prepare the entry made by ABC on January 1, 2020 to record the sale. Enter your answer...
Accounts: Cash, Deferred Revenue - Coupons, and Sales Revenue Problem 7 (sale with material right| Assume...
Accounts: Cash, Deferred
Revenue - Coupons, and Sales Revenue
Problem 7 (sale with material right| Assume that on July 1, 2020 you paid cash to purchase a television from Best Buy for $500. As part of a promotional effect, Best Buy gives you a coupon that allows you to buy a wall mount for the TV for $20. The wall mount normally sells for $80. The coupon expires after 30 days. Based on historical records, Best Buy estimates that 50%...
A company receives interest on a $80000, 6%, 5-year note receivable each April 1. At December...
A company receives interest on a $80000, 6%, 5-year note
receivable each April 1. At December 31, 2020, the following
adjusting entry was made to accrue interest receivable:
Interest Receivable
3600
Interest Revenue
3600
Assuming that the company does use reversing
entries, what entry should be made on April 1, 2021 when the annual
interest payment is received?
Cash
4800
Interest Receivable
3600
Interest Revenue
1200
Cash
3600
Interest Receivable
3600
Cash
1200
Interest Revenue
1200
Cash
4800
Interest Revenue...
A company receives interest on a $99000, 6%, 5-year note receivable each April 1. At December...
A company receives interest on a $99000, 6%, 5-year note receivable each April 1. At December 31, 2020, the following adjusting entry was made to accrue interest receivable: Interest Receivable 4455 Interest Revenue 4455 Assuming that the company does not use reversing entries, what entry should be made on April 1, 2021 when the annual interest payment is received? Cash 4455 Interest Receivable 4455 Cash 5940 Interest Revenue 5940 Cash 1485 Interest Revenue 1485 Cash 5940 Interest Receivable 4455 Interest...
Cambria Limited took a $400,000 two-year note receivable from a customer in connection with a major...
Cambria Limited took a $400,000 two-year note receivable from a customer in connection with a major inventory sale transaction on 1 January 20X5. The note required annual end-of-year interest payments of 4%, and the principal was due at the end of 20X6. (PV of $1. PVA of S1, and PVAD of S1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare journal entries to record the initial sale transaction and each payment on the books of Cambria, assuming that...
Note Receivable Problem #3 On January 1, 2020, ABC sold merchandise for to a customer and...
Note Receivable Problem #3 On January 1, 2020, ABC sold merchandise for to a customer and agreed a $100,000 note receivable paid in four equal annual installments, each due on December 31. Note has no (zero) stated rate and an imputed interest rate of 8%. a. Determine the issue price of the note receivable. b. Provide the journal entry to record the bond issue? C. Determine the amount of interest revenue that Sparky will recognize over the life of the...
Accounts receivable Cash 99,508 99,508 Revenue Sales discounts 99,508 Use the T-accounts to record the following...
Accounts receivable Cash 99,508 99,508 Revenue Sales discounts 99,508 Use the T-accounts to record the following transactions for LAX, LLC.: 1. LAX sold goods to Onalaska, Inc. for $5,000, on account. Terms were 1/10, net/30. 2. LAX sold goods to La Crescent, LLC for $2,750, on account. Terms were 2/15, net 30. 3. LAX sold goods to XYZ Co. for $99,000.XYZ paid cash. 4. LAX collected full payment from Onalaska, Inc. 10 days after the purchase date. 5. La Crescent,...
A company receives interest on a $90,000, 8%, 5-year note receivable each April 1. At December...
A company receives interest on a $90,000, 8%, 5-year note receivable each April 1. At December 31, 2020, the following adjusting entry was made to accrue interest receivable: Interest Receivable ............................................................... 5,400 Interest Revenue ...................................................... 5,400 Assuming that the company does use reversing entries, what entry should be made on April 1, 2021 when the annual interest payment is received? Cash ....................................................................................................1,800 Interest Revenue ...................................................... 1,800 Cash ....................................................................................................5,400 Interest Revenue .........................................................................................5,400 Cash ............................................................. 7,200 Interest Receivable..................................................5,400 Interest Revenue.....................................................1,800 Cash ....................................................................................................7,200...
1. A company receives interest on a $40,000, 8%, 5-year note receivable each April 1. At...
1. A company receives interest on a $40,000, 8%, 5-year note receivable each April 1. At December 31, 2020, the following adjusting entry was made to accrue interest receivable: Interest Receivable ........... ....... 2,400 Interest Revenue ................. 2,400 Assuming that the company does use reversing entries, what entry should be made on April 1, 2021 when the annual interest payment is received?
No. Date Account Titles and Explanation Debit Credit (1) Dec 500000 3 Accounts Receivable 500000 Sales...
No. Date Account Titles and Explanation Debit Credit (1) Dec 500000 3 Accounts Receivable 500000 Sales Revenue (To record credt sale) Cost of Goods Sold 320000 Inventory 320000 (To record cost of good sold) Dec. (2) E Sales Returns and Allowances 20000 Accounts Receivable 20000 Dec. (3) 043 Cash 475200 Sales Discounts 4800 Accounts Receivable 480000 ▼ (b) Assume that Kale Company received the balance due from Thomson Co. on January 2 of the following year instead of December 13....
D E A B с Problem 6 (sale with time value of money, IR] On January 1, 2020, ABC sold and delivered a product to XYZ. ABC allows XYZ to delay payment for twelve months, at which time XYZ will pay ABC $20,000. ABC deems the financing component of the transaction to be significant and decides that an applicable interest rate is 10%. Prepare the entry made by ABC on January 1, 2020 to record the sale. Enter your answer...
Accounts: Cash, Deferred
Revenue - Coupons, and Sales Revenue
Problem 7 (sale with material right| Assume that on July 1, 2020 you paid cash to purchase a television from Best Buy for $500. As part of a promotional effect, Best Buy gives you a coupon that allows you to buy a wall mount for the TV for $20. The wall mount normally sells for $80. The coupon expires after 30 days. Based on historical records, Best Buy estimates that 50%...
A company receives interest on a $80000, 6%, 5-year note
receivable each April 1. At December 31, 2020, the following
adjusting entry was made to accrue interest receivable:
Interest Receivable
3600
Interest Revenue
3600
Assuming that the company does use reversing
entries, what entry should be made on April 1, 2021 when the annual
interest payment is received?
Cash
4800
Interest Receivable
3600
Interest Revenue
1200
Cash
3600
Interest Receivable
3600
Cash
1200
Interest Revenue
1200
Cash
4800
Interest Revenue...
Cambria Limited took a $400,000 two-year note receivable from a customer in connection with a major inventory sale transaction on 1 January 20X5. The note required annual end-of-year interest payments of 4%, and the principal was due at the end of 20X6. (PV of $1. PVA of S1, and PVAD of S1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare journal entries to record the initial sale transaction and each payment on the books of Cambria, assuming that...
Note Receivable Problem #3 On January 1, 2020, ABC sold merchandise for to a customer and agreed a $100,000 note receivable paid in four equal annual installments, each due on December 31. Note has no (zero) stated rate and an imputed interest rate of 8%. a. Determine the issue price of the note receivable. b. Provide the journal entry to record the bond issue? C. Determine the amount of interest revenue that Sparky will recognize over the life of the...
Accounts receivable Cash 99,508 99,508 Revenue Sales discounts 99,508 Use the T-accounts to record the following transactions for LAX, LLC.: 1. LAX sold goods to Onalaska, Inc. for $5,000, on account. Terms were 1/10, net/30. 2. LAX sold goods to La Crescent, LLC for $2,750, on account. Terms were 2/15, net 30. 3. LAX sold goods to XYZ Co. for $99,000.XYZ paid cash. 4. LAX collected full payment from Onalaska, Inc. 10 days after the purchase date. 5. La Crescent,...
1. A company receives interest on a $40,000, 8%, 5-year note receivable each April 1. At December 31, 2020, the following adjusting entry was made to accrue interest receivable: Interest Receivable ........... ....... 2,400 Interest Revenue ................. 2,400 Assuming that the company does use reversing entries, what entry should be made on April 1, 2021 when the annual interest payment is received?
No. Date Account Titles and Explanation Debit Credit (1) Dec 500000 3 Accounts Receivable 500000 Sales Revenue (To record credt sale) Cost of Goods Sold 320000 Inventory 320000 (To record cost of good sold) Dec. (2) E Sales Returns and Allowances 20000 Accounts Receivable 20000 Dec. (3) 043 Cash 475200 Sales Discounts 4800 Accounts Receivable 480000 ▼ (b) Assume that Kale Company received the balance due from Thomson Co. on January 2 of the following year instead of December 13....
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