Homework Answers
| Calculation Of Interest On-Time Deposit | |||||
| SR | |||||
| Opening Balance Of Deposit | 2000000 | ||||
| Add: | |||||
| Amount Deposited On 01/01/2002 | 500000 | ||||
| Total Deposit Chargeable to Interest | 2500000 | ||||
| Interest On-Time Deposit | 37500 | ||||
| (2500000*6%*3m/12m) | |||||
| Add Opening Allowance For Deposit Interest | 10000 | ||||
| Total | 47500 | ||||
| Journal Entries | |||||
| Date | Account Title | Debit (SR) | Credit (SR) | ||
| 01-01-2002 | Cash | 500000 | |||
| Time Deposit Payable | 500000 | ||||
| (time deposit accepted ) | |||||
| 03-01-2002 | Interest Expenses | 37500 | |||
| Allowance for time deposit interest | 10000 | ||||
| Cash | 47500 | ||||
| (interest on time deposit paid to the customer) | |||||
| 03-01-2002 | Time Deposit Payable | 2500000 | |||
| Cash | 2500000 | ||||
| (time deposit paid to the customer) | |||||
| Note: It is assumed that interest is not compounded interest. i.e. its simple interest | |||||
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Exercise 2: On 1/1/2002 Time deposit balance is SR 2,000,000. Allowance for time deposit interest is SR 10,000 On 1...
EXERCISE 2 Brown Company had a $1,000 credit balance in Allowance for Doubtful Accounts at December...
EXERCISE 2 Brown Company had a $1,000 credit balance in Allowance for Doubtful Accounts at December 31, 2020, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $100,000 1% 1–30 days past due 12,000 3% 31–60 days past due 10,000 6% 61–90 days past due 6,000 25% Over 90 days past due 8,000 50% Total Accounts Receivable $136,000 Instructions: (a) Prepare the adjusting entry on December 31, 2020, to recognize bad debts expense. (b) Assume the same facts as above except...
1) 2) 3) Determine Due Date and Interest on Notes Determine the due date and the...
1)
2)
3)
Determine Due Date and Interest on Notes Determine the due date and the amount of interest due at maturity on the following notes: Date of Note Face Amount Interest Rate Term of Note $40,000 a. January 10* b. March 19 18,000 90 days 180 days 30 days 90 days 90,000 c. June 5 d. September 8 36,000 27,000 e. November 20 60 days *Assume that February has 28 days. Assume 360-days in a year when computing the...
Assume that you deposit $10,000 today into an account paying 6% annual interest and leave it...
Assume that you deposit $10,000 today into an account paying 6% annual interest and leave it on deposit for exactly 8 years. a. How much will be in the account at the end of 8 years in interest is compounded: 1. annually? 2. semiannually? 3. monthly? 4. continuously? b. Calculate the effective annual rate (EAR) for a (1) through a (4) above. c. Based on your findings in parts a and b, what is the general...
Q.6 Three year bonds are issued at face value of SR 100,000 on Jan. 1, 2007,...
Q.6 Three year bonds are issued at face value of SR 100,000 on Jan. 1, 2007, and a stated interest rate of 8%. Calculate the issue price of the bonds assuming a market interest rate of 6%. The present value of SR 1 is .83962 at 6% after 3 years and the present value of an ordinary annuity of SR 1 is 2.67301 at 6% after 3 years. Q.7. Three year 8% bonds of SR 100,000 issued on Jan. 1,...
1.Starting 1/1/14 and continuing each January 1 for four additional years, Case Corporation will deposit $10,000...
1.Starting 1/1/14 and continuing each January 1 for four additional years, Case Corporation will deposit $10,000 in an account that will initially earn interest at a rate of 5%, credited each year on December 31. After the last deposit is made on 1/1/18, the account will earn 10% interest. What will be the approximate amount of the investment fund on December 31, 2020? Select one: a. $ 66,860 b. $60,782 c. $67,012 d. $70,363 e. $73,546 2.Bill Gates plans to...
Accounts Receivable Exercise What you will learn more about: Bad Debt Allowance for Bad Debt Allowance...
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* Exercise 249 Erickson Company had a $300 balance in Allowance for Doubtful Accounts at December...
* Exercise 249 Erickson Company had a $300 balance in Allowance for Doubtful Accounts at December 31, 2017, before the current year's adjustment for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible 1% Current Accounts 1-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due Total Accounts Receivable $170,000 15,000 12,000 5,000 9,000 $211,000 6 % 15 % 30 % Calculate the estimated total uncollectable amount. Estimated...
Required information Exercise 5-6B Record credit sales with a sales allowance (LO5-1, 5-2) [The following information...
Required information Exercise 5-6B Record credit sales with a
sales allowance (LO5-1, 5-2) [The following information applies to
the questions displayed below.] On April 25, a company installs
wiring in a new home for $3,000 on account. However, on April 27,
the company's work does not pass inspection, and the company grants
the customer an allowance of $550 because of the problem. The
customer makes full payment of the balance owed, excluding the
allowance, on April 30.
Exercise 5-6B Part...
Question 1 (8 points) This problem nvolves credit cards that calculate interest using the Average daily balance method. The monthly interest rate is 1.5% of the Average daily balance. Each exercise s...
Question 1 (8 points) This problem nvolves credit cards that calculate interest using the Average daily balance method. The monthly interest rate is 1.5% of the Average daily balance. Each exercise shows transactions that occurred during the March 1-March 31 billing period. In each exercise, a. Fill in the blanks in the table. Then find the Average daily balance for the billing period. Round to the nearest cent. Transaction description Previous balance, $6240.00 March 1 Billing date March 5 Payment...
Exercise 2 On March 1, 2018, Machinarium SpA borrowed €500,000 from Unidebit bank. The five-year, 7%...
Exercise 2 On March 1, 2018, Machinarium SpA borrowed €500,000 from Unidebit bank. The five-year, 7% loan requires payments in semi-annual installments. Each payment consists of 25,000 principal, plus one semester's interest. On July 31, Machinarium sends an invoice of 18,000 to a customer for services provided. The customer pays with an 18-month note, bearing interest at 8%. On November 15, the firm discounts its note receivable to the Banca di Roccasecca, that applies an 11% discount rate to the...
1)
2)
3)
Determine Due Date and Interest on Notes Determine the due date and the amount of interest due at maturity on the following notes: Date of Note Face Amount Interest Rate Term of Note $40,000 a. January 10* b. March 19 18,000 90 days 180 days 30 days 90 days 90,000 c. June 5 d. September 8 36,000 27,000 e. November 20 60 days *Assume that February has 28 days. Assume 360-days in a year when computing the...
Accounts Receivable Exercise What you will learn more about: Bad Debt Allowance for Bad Debt Allowance Method or Balance Sheet Approach Income Statement Approach Accounts Receivable Turnover Average Collection Period Dr. I. Ball, an Optometrist asks you to take a look at his accounts receivable situation for the year. He provides you the following information as of December 31: Accounts Receivable Accounts: Not yet due $43.270 1-30 days overdue 27.100 31-60 days overdue 14,800 More than 60 days overdue 9,700...
* Exercise 249 Erickson Company had a $300 balance in Allowance for Doubtful Accounts at December 31, 2017, before the current year's adjustment for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible 1% Current Accounts 1-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due Total Accounts Receivable $170,000 15,000 12,000 5,000 9,000 $211,000 6 % 15 % 30 % Calculate the estimated total uncollectable amount. Estimated...
Required information Exercise 5-6B Record credit sales with a
sales allowance (LO5-1, 5-2) [The following information applies to
the questions displayed below.] On April 25, a company installs
wiring in a new home for $3,000 on account. However, on April 27,
the company's work does not pass inspection, and the company grants
the customer an allowance of $550 because of the problem. The
customer makes full payment of the balance owed, excluding the
allowance, on April 30.
Exercise 5-6B Part...
Question 1 (8 points) This problem nvolves credit cards that calculate interest using the Average daily balance method. The monthly interest rate is 1.5% of the Average daily balance. Each exercise shows transactions that occurred during the March 1-March 31 billing period. In each exercise, a. Fill in the blanks in the table. Then find the Average daily balance for the billing period. Round to the nearest cent. Transaction description Previous balance, $6240.00 March 1 Billing date March 5 Payment...
Exercise 2 On March 1, 2018, Machinarium SpA borrowed €500,000 from Unidebit bank. The five-year, 7% loan requires payments in semi-annual installments. Each payment consists of 25,000 principal, plus one semester's interest. On July 31, Machinarium sends an invoice of 18,000 to a customer for services provided. The customer pays with an 18-month note, bearing interest at 8%. On November 15, the firm discounts its note receivable to the Banca di Roccasecca, that applies an 11% discount rate to the...
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