. What is the loss on note receivable discounting?
Q: Oriole Supply Co. has the following transactions related to notes receivable during the last 2…
A: Journal entry is a primary entry that records the financial transactions initially.
Q: On November 12, 2021, Jones Corporation borrows money at James National Bank by issuing a $10,000, 3…
A: Effective annual interest rate = Interest / ( Proceeds x Time ) Given that: Discounted = 12% Basis…
Q: On June 30, 2020, OPQ Company discounted at the bank a customer P6,000,000, 6-month, 10% note…
A: Note receivable: It can be defined as an asset that represents a right on part of the holder to…
Q: Dab Company provides 1,200,000 of its account receivables to investment bank for notes 600,000 on…
A: The account receivables of a company are referred to as the amount that a company has to receive…
Q: On April 1, 2020, Shalimar Company discounted with recourse a 9-month, 10% note dated January 1,…
A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…
Q: On December 1, 2020, Company assigned specific accounts receivable totalling P4,000,000 as…
A: given that, The company assigned specific accounts receivable totaling P4,000,000 as collateral on a…
Q: Note Company provided the following information on its notes payable as of December 31, 2020: Note…
A: Liability is a sum of money an individual or organization owns. Current liabilities are an…
Q: on july 31, 2020 clear company discounted at the bank a customer's 600,000 interest bearing note 6…
A: Maturity value of note = Face value + interest = 600000 + (600000*10%*6/12) = 630,000 Discount =…
Q: On July 31, 2020, Clear Company discounted at the bank a customer’s P600,000 interest-bearing note,…
A: Solution: Maturity value of note = Principal + interest = 600000 + 600000*10%*6/12 = 600000 + 30000…
Q: Brooke Company discounted its own P5, 000,000 one year note at a bank, at a discount rate of 12%,…
A: SOLUTION- Prime Rate is the interest rate charged by commercial banks to their most creditworthy…
Q: On November 1, 2021, FN Trading accepted a 90-day, 8% P9,000,000 note from ABC Co. FN immediately…
A: Given data, Face value=P9,000,000 Bank processing fee =P80,000 Maturity value of the note = Face…
Q: MCM Company issued a note receivable to a customer on September 1, 2020. The face value of the note…
A: Note receivable is considered as a negotiable instrument. It represents the claim amount due on the…
Q: On November 1, 2021, FDN Trading accepted a 90-day, 8% P7,000,000 note from ABC Co. FDN immediately…
A: Maturity value of the note = Face value of the not + Interest on the note = 7000000 +…
Q: On July 31, 2020, Clear Company discounted at the bank a customer's 600,000 interest-bearing note,…
A: Solution: Maturity value of note = Principal + Interest = 600,000 + (600,000*10%*6/12) = 600,000 +…
Q: On September 30, 22, Choco Lanay Company discounted at the bank a customer's P1,750,000 6 month 12%…
A: Note receivable can be converted into cash by selling them to a financial institution at a discount.…
Q: 6%, 110-days note dated 31 August 2019 has a maturity value of RM4,073.33. On 12th October 2019, the…
A:
Q: Assume the following information regarding a note received by HEERHUM YU Company: Principal amount…
A: The note receivable is a current asset, which is issued by the debtors of the company as a…
Q: 22. Assume the following information regarding a note received by HEERHUM YU Company: P1,500,000…
A:
Q: On December 1, 2020, Company assigned specific accounts receivable totalling P4,000,000 as…
A: Accounts receivable refers to the amount of goods and services rendered on credit but not payment…
Q: On October 31, 2022, BB Company discounted at the bank a customer’s P600,000 interest-bearing note,…
A: A credit sale by company, leads to creation of credit note which is interest bearing. Whnever the…
Q: On July 31, 2020, Clear Company discounted at the bank a customer's P600,000 interest-bearing note,…
A: The bill discount means getting money from bank against note receivable.
Q: On November 1, 2021, Calexico Trading accepted a 90-day, 8% P2,000,000 note from ABC Co. Calexico…
A: Notes Payable / Receivable The purpose issuing the Notes receivable / Notes payable to collect the…
Q: On November 1, 2021, FDN Trading accepted a 90-day, 8% P10,000,000 note from ABC Co. FDN immediately…
A: Maturity value of the note = Face value + interest = P10,000,000 +P10,000,000 *8%*90/360 = P10200000
Q: On july 31, 2020, Clear company discounted at the bank a customer's P 600,000 interest-bearing note,…
A: Maturity Value = Principal + (Principal * Rate * Time) = P 600,000 + (P 600,000 * 0.10 * 6/12) = P…
Q: On April 1,2020, Aljean Company discounted with recourse a 9-month, 10% note dated January 1, 2020…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Frame company has an 8% note receivable dated June 30, 2021, in the original amount of P1,500,000.…
A: Original Amount of Note receivable = 1500000 Yearly principal payment = 500000 Interest rate = 8%…
Q: On October 1, 2021, Home Company issued to Security Bank a P6,000,000, 8-month, noninterest-bearing…
A: Note payable: Note payable is a current liability reported in the company's balance sheet at the…
Q: n November 12, 2021, Jones Corporation borrows money at James National Bank by issuing a $10,000, 3…
A: Journal entry is the process of documenting commercial transactions for the first time in the books…
Q: On June 30, 2020, Dive Company discounted at the bank a customer's P6,000,000, 6-month, 10% note…
A: Solution 1: Maturity value of note = P6,000,000 + P6,000,000*10%*6/12 = P6,300,000 Net proceeds from…
Q: On April 1, 2020 ZAB Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…
A: Interest expense is the expense on the cost of borrowing money. This price is charged by lender to…
Q: On June 30, 2020, GHI Company discounted at the bank a customer P6,000,000, 6-month, 10% note…
A: A note receivable is an instrument that promises the holder of the note a certain amount of sum…
Q: On April 1, 2020 RST Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…
A: Note receivable: Note receivable refers to a written promise for the amounts to be received within…
Q: On 1 September 2021, ABC Bhd used its receivables totalling RM 350,000 as collateral on : 250,000,…
A: Journal entries refers to reporting of business transaction into the books of the entity as well as…
Q: On Nov. 16, 2021, JUMBLE BEE sold with recourse a 10%, 60-day, P80,000 note receivable dated Nov. 1,…
A: Discounting a note with a resource means that the firm or business discounting the note agrees to…
Q: On January 1, 2021, Mahogany Company issued a note with a face amount of P2,000,000. The note…
A: Notes Payables: A liability account for notes payable is where a borrower records a written…
Q: Nova company reported the following receivables on December 31, 2020: Accounts receivable, net of…
A: Solution: Particulars Amount P3,000,000 x 8% x3/12 60.000 P1,000,000 x 6% X10/12 50,000…
Q: On January 1, 2021, Mahogany Company issued a note with a face amount of P2,000,000. The note…
A: Bond Value 2000000 coupon rate 10% Market rate 12.50% Coupon payable every year end for…
Q: On July 1, 2017, KYU Co. discounted a 90-day, P850,000, 12% note, received from a customer on June…
A: Bills of exchange: Bills of exchange or notes are prepared for the smooth functioning of trade.…
Q: On July 1, 2020, Jolly Company sold goods in exchange for P2,000,000, 8-month, noninterest-bearing…
A: The notes receivable is an account in the balance sheet generally under the current assets if the…
Q: On October 31 2022. BB Company discounted at the bank a customer's P600,000 interest-bearing note, 6…
A: Maturity value of the Note = Face value of the Note + Interest on the note where, Interest on the…
Q: On August 31, 2022, Prestige Co. discounted at a bank a customer's P1,200,000, 9-month, 10% note…
A: The discount of note receivable is a way to get money from bank against note receivable before due…
Q: The trial balance for BLUE Corporation prepared at December 31, 2020 showed a balance of P4,000,000…
A: Notes receivable is the financial instrument issued by the debtor for the item or goods purchased on…
Q: On December 1, 2020, Company assigned specific accounts receivable totalling P4,000,000 as…
A: The balance due to the company for goods and services provided but not yet charged by customers is…
Q: On July 20, 2021, Benildo Corp. discounts a 120 days, 15% P250,000 note of a customer dated July 10,…
A: Notes are given interest rate and they are paid on maturity with interest also but they can be…
Q: On July 31, 2020, Clear Company discounted at the bank a customer's P600,000 interest-bearing note,…
A: Net Proceeds from discounted note = Maturity Value - Discount on note
Q: On 1 September 2021, ABC Bhd used its receivables totalling RM 350,000 as collateral on a 250,000,…
A: DATE PARTICULARS DEBIT CREDIT 30.09.2019 Finance Charge Dr. 5,000.00…
Q: A company sold goods to a customer in exchange for a 5-year, zero-interest-bearing note on January…
A: Face Value of Notes Receivable=$308,000 Interest Rate = 10% The goods sold in exchange for a 5 year…
Q: 1. On November 1, 2021, FDN Trading accepted a 90-day, 8% P10,000,000 note from ABC Co. FDN…
A: We shall answer the first question since the exact question wasn't specified. Please resubmit a new…
Q: On May 20, 2021, Gordon Company discounted with recourse a P75,000, 90-day, 8% note that was…
A: Maturity value of the note = Face value of note + interest = P75,000 + (P75,000*8%*90/360) = P75,000…
Q: A Company discounted a customer's 10%, 120-day note for P300,000 dated September 20, 2021 with BPI…
A: Solution: In case of discounting of note, proceeds received will be maturity value which is deducted…
On June 30, 2020, Bosom Company discounted at the bank a customer's P6,000,000, 6-month, 10% note receivable dated April 30, 2020. The bank discounted the note at 12%.
1. What amount should be reported as net proceeds from the discounted note receivable?
a. 5,640,000
b. 5,760,000
c. 6,048,000
d. 6,174,400
2. What is the loss on note receivable discounting?
a. 252,000
b. 152,000
c. 52,000
d. 48,000
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- On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.Comprehensive Receivables Problem Blackmon Corporations December 31, 2018, balance sheet disclosed the following information relating to its receivables: The company has a recourse liability of 700 related to a note receivable sold to a bank. During 2019, credit sales (terms, n/EOM) totaled 2,200,000, and collections on accounts receivable (unassigned) amounted to 1,900,000. Uncollectible accounts totaling 18,000 from several customers were written off, and a 1,350 accounts receivable previously written off was collected. Additionally, the following transactions relating to Blackmons receivables occurred during the year: On December 31, 2019, an aging of the accounts receivable balance indicated the following: Required: 1. Prepare the journal entries to record the preceding receivable transactions during 2019 and the necessary adjusting entry on December 31, 2019. Assume a 360-day year for interest calculations and round calculations to the nearest dollar. 2. Prepare the receivables portion of Blackmons December 31, 2019, balance sheet. 3. Next Level Compute Blackmons accounts receivable turnover in days, assuming a 360-day business year. What is your evaluation of its collection policies? 4. If Blackmon uses IFRS, what might be the heading of the section for the receivables reported in Requirement 2?Element Surfboards issued a $210,800 note on January 1, 2018 to a customer, Leona Marland, in exchange for merchandise. Terms of the note are 9-month maturity date on October 1, 2018 at a 10.2% annual interest rate. Leona Marland does not pay on her account and dishonors the note. On December 2, 2018, Element Surfboards decides to sell the dishonored note to a collection agency for 30% of its value. Record the journal entries for Element Surfboards for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on October 1, 2018 C. Receivable sale on December 2, 2018
- Rain T-Shirts issued a $440,600 note on January 1, 2018 to a customer, Larry Potts, in exchange for merchandise. The merchandise had a cost to Rain T-Shirts of $220,300. The terms of the note are 24-month maturity date on December 31, 2019 at a 4.5% annual interest rate. Larry Potts does not pay on his account and dishonors the note. Record journal entries for Rain T-Shirts for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturityMystic Magic issued a $120,250 note on January 1, 2018 to a customer, Amy Arnold, in exchange for merchandise. Terms of the note are 9-month maturity date on October 1, 2018 at a 9.6% annual interest rate. Amy Arnold does not pay on her account and dishonors the note. On November 10, 2018, Mystic Magic decides to sell the dishonored note to a collection agency for 25% of its value. Record the journal entries for Mystic Magic for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on October 1, 2018 C. Receivable sale on November 10, 2018Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
- On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000Non-Interest-Bearing Notes Payable On November 16, 2019, Clear Glass Company borrowed 20,000 from First American Bank by issuing a 90-day, non-interest-bearing note. The bank discounted this note at 12% and remitted the difference to Clear Glass. Required: 1. Prepare the journal entries of Clear Glass to record the preceding information, the related calendar year-end adjusting entry, and payment of the note at maturity. 2. Show how the preceding items Would be reported on the December 31, 2019, balance sheet. 3. Next Level What is Clear Glass Companys effective interest rate?A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
- On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.Proceeds from notes payable On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount of 150,000. A. Determine the proceeds of the note, assuming the note carries an interest rate of 10%. B. Determine the proceeds of the note, assuming the note is discounted at 10%.Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
