On September 1, 2018, Mason Company borrowed $300,000 at 10% interest and pledged $400,000 in accounts receivables as collateral. Additionally, Mason was charged a finance fee equal to 1% of the accounts receivable assigned. At the end of December, $200,000 of the assigned receivables were collected and remitted to the lender along with accrued interest. Prepare journal entries to record the borrowing, the assignment of receivables, the collection on the receivables , and the recognition of interest expense. "
Accounts | Debit | Credit |
Cash | 296000 | |
Finance Fees (400000*1%) | 4000 | |
Loan Payable | 300000 | |
Accounts Receivable | 400000 | |
Accounts Receivable Assigned | 400000 | |
Cash | 200000 | |
Accounts Receivable | 200000 | |
Interest Expense (300000*10%) | 30000 | |
Interest Payable | 30000 | |
Interest Payable | 30000 | |
Cash | 30000 | |
Loan Payable | 200000 | |
Cash | 200000 |
On September 1, 2018, Mason Company borrowed $300,000 at 10% interest and pledged $400,000 in accounts...
On September 1, 2018, Mason Company borrowed $300,000 at 10% interest and pledged $400,000 in accounts receivables as collateral. Additionally, Mason was charged a finance fee equal to 1% of the accounts receivable assigned. At the end of December, $200,000 of the assigned receivables were collected and remitted to the lender along with accrued interest. Prepare journal entries to record the borrowing, the assignment of receivables, the collection on the receivables , and the recognition of interest expense. "
"8. On September 1, 2018, Mason Company borrowed $300,000 at 10% interest and pledged $400,000 in accounts receivables as collateral. Additionally, Mason was charged a finance fee equal to 1% of the accounts receivable assigned. At the end of December, $200,000 of the assigned receivables were collected and remitted to the lender along with accrued interest. Prepare journal entries to record the borrowing, the assignment of receivables, the collection on the receivables , and the recognition of interest expense. "
On September 1, 2018, Creeks Company borrowed $300,000 at 10% interest and pledged $400,000 in accounts receivables as collateral. Additionally, Creeks was charged a finance fee equal to 1% of the accounts receivable assigned. At the end of December, $200,000 of the assigned receivables were collected and remitted to the lender along with accrued interest. Prepare journal entries to record the borrowing, the assignment of receivables, the collection on the receivables , and the recognition of interest expense. "
On December 1, 2021, General Mole borrowed $400,000 at 12% interest and pledged $500,000 in accounts receivable as collateral. Additionally, General Mole was charged a finance fee equal to 1% of the accounts receivable assigned. At the end of December, $300,000 of the assigned receivables were collected and remitted to the lender along with accrued interest. Required: Prepare journal entries to record the borrowing, the assignment of receivables, the collection on the receivables, and the recognition of interest expense. (If...
On December 1, 2018, General Mole borrowed $400,000 at 12% interest and pledged $500,000 in accounts receivable as collateral. Additionally, General Mole was charged a finance fee equal to 1% of the accounts receivable assigned. At the end of December, $300,000 of the assigned receivables were collected and remitted to the lender along with accrued interest. Required: Prepare journal entries to record the borrowing, the assignment of receivables, the collection on the receivables, and the recognition of interest expense. (If...
QUESTION 10 On October 1·2018, watergate Hotels borrowed $400 at 12% interest and pledged S50,00 in accounts receivable a collateral Additionally, Watergate was charged a nance fee equal to 1% o the accounts recevable ass gned At the end of December, S 000 f the assigned rece ables were collected and rem itted to the lender along with accrued interest Prepare the journal entries to to record the borrowing, the assignment of receivables, the collection of the receivables, and the...
On June 30, 2021, the High Five Surfboard Company had outstanding accounts receivable of $800,000. On July 1, 2021, the company borrowed $650,000 from the Equitable Finance Corporation and signed a promissory note. Interest at 10% is payable monthly. The company assigned specific receivables totaling $800,000 as collateral for the loan. Equitable Finance charges a finance fee equal to 1.2% of the accounts receivable assigned.Required:Prepare the journal entry to record the borrowing on the books of High Five Surfboard. (If...
On June 30, year 1, Apaca Shoes had outstanding accounts receivable of $500,000. On July 1, year 1, the company borrowed $350,000 from the EX Finance Corporation and signed a promissory note. Interest at 11% is payable monthly. The company assigned specific receivables totaling $500,000 as collateral for the loan. EX Finance charges a finance fee equal to 2% of the accounts receivable assigned. Required: Prepare the journal entry to record the borrowing on the books of Apaca Shoes.
On September 1, Riva Co. assigns specific receivables totaling $750,000 to Pacific Bank as collateral on a $625,000, 12 percent note. Riva Co. will continue to collect the assigned accounts receivable. Pacific also assesses a 2 percent service charge on the total accounts receivable assigned. Riva Co. is to make monthly payments to Pacific with cash collected on assigned accounts receivable. Collections of assigned accounts during September totaled $260,000 less cash discounts of $3,500. What amount is owed to Pacific...
Tt problem 8-14 (IAA) necember 1, 2019, Solvent Company assignea on 0n nt receivable totaling P5,000,000 as collatity will accoun 000 12% note from a certain bank. The en d specific Puosinue to collect the assigned accounts receiva tity continue ivable. edition to the interest on the note, the bank also chargea In 5% finance fee deducted in advance on the assigne also charged accounts. December collections of assigned acounts receiva gmounted to P2,000,000 less cash discount of P200,000. December...