A company needs to record six months of accrued interest on a four-year, 12%, $12,000 promissory note payable. How much interest expense should be accrued? $2,160 $720 $1,440 $1,080

Q: A company purchases equipment with a $20,000 note payable. The note is to be paid in $5,000 annual…

A: Usually, notes payable is to be treated as a current liability for the organization but as per the…

Q: Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual…

A: Journal:Journal is the method of recording monetary business transactions in chronological order. It…

Q: On September 1, Kennedy Company loaned $112,000, at 9% annual interest, to a customer. Interest and…

A: The question is based on the concept of Financial Accounting.

Q: FDN Company received a four-month note receivable in the amount of P93,000,000 on September 1. The…

A: The accrued revenue is the revenue earned but not received yet. It is recorded as an asset in the…

Q: On January 1, Year 1, Beatie Company borrowed $400,000 cash from Central Bank by issuing a…

A: Amortization schedule of interest and principal payment for 5 periods is as under:

Q: CHuee Company borrows $40,000 from the local bank at 8% interest. The term of the note is 5 years,…

A: Interest means the extra amount paid over and above the principal amount of loan. Total amount…

Q: A company has a $500,000 30 year fixed loan payable at an interest rate of 4% monthly loan payments…

A: The entry for first month loan payment  are as follows

Q: Al-Ahmadi Co. signed a three-month, 9%, note payable in the amount of OMR75,000 on Dec 1.  The note…

A: Formula: Interest amount = Principal amount x interest rate. Multiplying interest rate with…

Q: Justin Company signed a $90,000, three-month, 9% note payable, on December 1. If the accounting…

A: Interest accrued on December 31= Face value of bonds x rate of interest x no. of month/12 = $90000 x…

Q: Reality Corporation borrowed $175,000 on April 1. The note requires interest at 12% and principal to…

A: From April 1 to December 31 = 9 months Interest has been accrued for 9 months.

Q: Company is due in five years. On both notes, interest is calculated on the outstanding principal The…

A: Answer:       Amounts that should these two notes receivable be reported in Jet's December 31,…

Q: On July 8, Jones Inc. issued an $85,000, 8%, 120-day note payable to Miller Company. Assume that the…

A: From July 8 to July 31 = 23 days Interest expense has been accrued for 23 days for the note payable.…

Q: Fifteen transactions or events affecting Drillmasters, Inc., are as follows: 4. Earned an amount…

A: In the organization, various transactions take place in a day to day business operations. This means…

Q: On the first day of the fiscal year, Shiller Company borrowed $22,000 by giving a five-year, 12%…

A: Notes payable: Notes payable can be defined as an instrument where a borrower promises to repay the…

Q: What amount should the company include in the current liability section of the balance sheet?

A: Only the mortgage due in 12 month is current. The short-term debt has been refinanced and…

Q: Hanna Company reported warranty expense of P1,900,000 for the current year. The warranty liability…

A: Accounting:   Accounting is the art of recording, classifying and summarizing in a significant…

Q: On November 1, Alan Company signed a 120-day, 12% note payable, with a face value of $19,800. What…

A: Concept used:

Q: A company grants a payment extension to its customer by converting that $15,000 accounts payable to…

A: Interest on 45 days note for 30 days  115000*12%*30/360=$150

Q: A company purchases equipment with a $20,000 note payable. The note is to be paid in $5,000 annual…

A: Long-term notes payable: Long-term notes payable represent a legal and written promise made by the…

Q: On August 1, a $60,000, 7%, 3-year installment note payable is issued by a company. The note…

A: Principal =$60,000 Interest =$60,000×7%      =4200 Principal  + interest paid in 31 July =…

Q: PHAGE COMPANY estimates its annual warranty expense at 4% of net sales. The following balances are…

A: Estimated warranty expenses = sales x 4% = 1500000 x 4% = 60,000

Q: On January 1, 2018, Nantucket Ferry borrowed $14,000,000 cash from BankOne and issued a…

A: Interest on Note = Principal amount x rate of interest x time = $14,000,000 x 6% x 1 years =…

Q: On September 1, 20X1, Chabon Corp. purchased machinery costing $20,000 by issuing a 12-month, 12%,…

A: Lets understand the basics. Management some time purchase asset using the loan. In that case if loan…

Q: On October 1, a company borrowed $200,000 on a two-year, 12% note, with interest and principal to be…

A: Given: Principal = $200,000 Interest rate = 12%   From Oct 1 to Dec 31 = 3 months

Q: A company has a $5,000, 6%, 3-month note ceivable on its books that was issued May 1. ne amount of…

A: The note receivable is the current asset for the business. The Accrued interest is the interest that…

Q: Houston Company receives a six-month note from a customer. The note has a face amount of $8,000 and…

A: Interest Rate: It is a portion of the principal amount that is charged by a lender for the use of…

Q: For each of the following situations, indicate the amount shown as current or long-term liability on…

A: The current liability is the liability which is to be paid off within one year.

Q: A debt of $8,000 accumulated interest at 2.5% compounded annually for 15 months, after which the…

A: Time value of money: The time value of money is the idea that the value of money received today will…

Q: A company has a $15,000 loan payable that is due over five years. $3,000 of the loan must be paid in…

A: Current liabilities include all those liabilities which are payable within a time period of twelve…

Q: On September 1, Kennedy Company loaned $126,000, at 11% annual interest, to a customer. Interest and…

A: Solution: Adjusting entries are journal entries usually made at the end of an accounting period to…

Q: On the first day of the fiscal year, a company issues $69,000, 9%, seven-year installment notes that…

A: Note​ : Note is an instrument through which borrower obtains money from a person called lender and…

Q: ABC Company borrows $497,000 from the bank at 7% for a three year period on Jan. 01. The loan will…

A: As per IFRS 9 Financial  instruments, Borrowing from bank will be considered as Financial liability…

Q: Towline Corporation borrowed $75,000.00 at 11% compounded monthly for 10 years to buy a warehouse…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: A company has the following liabilities at year-end: Mortgage note payable; $16,000 due within 12…

A: Current liability includes all those liabilities which are payable within one year it includes…

Q: wed 12,000 by signing a

A: Note value $12000   Days 120   Interest rate 15%         Interest due on maturity…

Q: On October 1, Black Company receives a 10% interest-bearing note from Reese Company to settle a…

A: The interest revenue is the interest earned for the period on the note receivable, etc.

Q: A company purchased new equipment for $31,000 with a two-year installment note requiring 5%…

A: Notes payable: Notes Payable is a written promise to pay a certain amount on a future date, with…

Q: A company purchased new equipment for $31,000 with a two-year installment note requiring 5%…

A: Given information is: A company purchased new equipment for $31,000 with a two-year installment note…

Q: On December 1, a company signed a $6,000, 90-day, 5% note payable, with principal plus interest due…

A: Answer:   Option b.

Q: On February 1, 2021, a company loans one of its employees $21,000 and accepts a nine-month, 8% note…

A: Interest = Principal x rate of interest x no. of months/12 months

Q: Gray Inc. lends White Ltd. $60,000 on April 1, accepting a 6-month, 4.5% interest note. Interest is…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: On January 1, a company purchases equipment with a $5,000 down payment and $5,000 due on January 1…

A: Down payment on January 1 = $ 5000 Interest rate = 8 % Due of next 5 years of each year $ 5000.…

Q: Bright Inc. acquired a debt of $252,000. Acme agrees to repay the loan with payments of $13,500 made…

A: Here, Debt Amount is $252,000 Loan Payment is $13,500 Payment Period (p)  is the end of every three…

Q: a company borrowed 12,000 by signing a 120 day promissory note at 15% the total to be paid at…

A: Formula: Interest amount = Principal amount x Interest rate x Time period.