A company purchases equipment with a $20,000 note payable. The note is to be paid in $5,000 annual installments (plus interest) over the next 4 years. How is the note reported on the Balance Sheet?

Q: What is the entry: someone lend money to my company $10,000 cash in exchange for a two-year, 6% note…

A: Cash: Cash is the money that is readily available in the form of currency. Since cash can be easily…

Q: On September 1, Purifier Company borrowed $12,000 on a 6-month, 4%, short-term note payable. How…

A: Interest expense recorded on December 3 = Amount borrowed  x rate of interest x No. of months / 12…

Q: On May 1, Year 1, Benz's Sandwich Shop loaned $10,000 to Mark Henry for one year at 6 percent…

A: Workings. a) Given, Loan Amount=$10000,Interest Rate=6%,Time=8 months(i.e. from May to December)…

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: Jacobs Company borrowed $10,000 on a one-year, 8 percent note payable from the local bank onApril 1.…

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

Q: Coltrane Company has a $5,000 note payable that is paid in $1,000 installments over five years. How…

A:

Q: On May 1, Year 1, Benz's Sandwich Shop loaned $12,000 to Mark Henry for one year at 6 percent…

A: The interest amount is obtained when the loan amount is multiplied by the interest rate. Interest…

Q: Halep Inc. borrowed $54,000 from Davis Bank and signed a 4-year note payable stating the interest…

A: Given: Period = 4 years Payment = $14,876.46 Loan = $54,000 Interest rate = 4%

Q: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest…

A: An accounting technique that is used for the purpose of lowering the book value of a loan on a…

Q: A company borrowed at 7.21% compounded annually to purchase equipment, agreeing to make payments of…

A: Time values tell that money received today is of more worth than that of receiving the exact amount…

Q: On October 1, Bandor Company sold land (that cost $30,000) on credit for $35,000. The buyer issued…

A: Date Accounts title and explanation Debit ($) Credit ($) 1-Oct Note receivable $35,000…

Q: require an annual fee of 50,000 and an interest of 1% per month. On March 1, 2020, 3,000,000 is used…

A: Interest on remaining period on purchase value in credit line Purchase value = 30,00,000 used upto…

Q: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest…

A: A debt payable seems to be a promissory note that has been written. A borrower acquires a fixed sum…

Q: Q1)Zetix borrowed $20,000 on a one-year, 10 percent note payable from the local bank on March 1.…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: On May 1, Year 1, Benz's Sandwich Shop loaned $12,000 to Mark Henry for one year at 7 percent…

A: a. Interest income = Loan amount x interest rate x no. of months/12 = $12000*7%*8/12 = $560

Q: I. Prepare all journal entries for the following chronological transactions which took place in…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Sharapova Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the…

A: Laon amortization schedule means where repayment during the life of loan is written with interest.…

Q: The Block Concrete Company borrowed $20,000 at 8% interest, compounded semiannually, to be paid off…

A: Refinancing refers to the process of revising and replacing the terms of an existing credit…

Q: A company borrowed at 7 42% compounded monthly to purchase equipment, agreeing to make payments of…

A: Given, The rate of interest is 7.42% compounded monthly. Quarterly payments is $2900 Term is 17…

Q: A six-month bank loan in the amount of $12,000 had been obtained on September 1. Interest is to be…

A: Accrual Concept - According to this concept all the expenses incurred whether paid or not and all…

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: The business  is expected to make principal payments totalling $400,000 towards the loan during the…

A: Note payable is a liability account so by paying the principal amount of $ 400000 will reduce the…

Q: On January 1 of this year, Shannon Company completed the following transactions (assume a 10% annual…

A: Working:  Annual payment (P) = $40,000  Number of years (n) = 10 years  Rate of interest (r) = 10% =…

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: The business receives a promissory note of P50,000, carrying an interest rate of P10%. The note is…

A: Accrued income is that income which are earned by the business but the amount is yet to be received…

Q: Frank's Machine Shop purchased a computer to use in tuning encines. To finance the purchase, the…

A: The loan borrowed from a lender can be repaid in regular equal payments. These regular payments…

Q: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest…

A: Payment should be credit by cash. Interest expense and LT notes payable is debited.

Q: Homeland Plus specializes in home goods and accessories. In order for the company to expand its…

A: Solution to A Outstanding principal balance on December 31 of the first year that is computed for…

Q: On January 1 of this year, Shannon Company completed the following transactions (assume a 10% annual…

A: Present Value = Future Value1+in   Present Value Factor @ 10% Year Present Value Factor @10% 1…

Q: A company acquires assets recorded at $240,000 by paying $120,000 cash and taking on a 12 year…

A: Loan =240000-120000=120000/24=$5000 So instalment $5000 semi annual…

Q: An employee obtained a loan of P11,000 at the rate of 7% compounded annually in order to build a…

A: An amortisation schedule contains opening balance, payment , interest charged and closing…

Q: A contractor borrows $40,000 from a bank. According to the agreement between them, the contractor…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Maxx Company borrowed P10,000 from the bank signing a 9%, 3-month note on September 1. Principal and…

A: Adjusting entries are also known as closing entries because these are prepared at the time of…

Q: Homeland Plus specializes in home goods and accessories. In order for the company to expand its…

A: Interest accrued on december 31 of first year = Principal x rate of interest = $700000*8.70% =…

Q: On January 1 of this year, Shannon Company completed the following transactions (assume a 9% annual…

A: SOLUTION- PRESENT VALUE = FUTURE VALUE / (1+i)^n   PRESENT VALUE FACTOR  @ 9%. YEARS PRESENT…

Q: Homeland Plus specializes in home goods and accessories. In order for the company to expand its…

A: A)Determination of outstanding principal balance on December 31 Loan amount = 730,000 EMI = 90,000…

Q: On January 1, 2018, a business borrowed $18,000 on a five-year, 5% note payable. At December 31,…

A:

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: On January 1, 2018, a business borrowed $18,000 on a five-year, 5% note payable. At December 31,…

A:

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 May 1, Year 1, Benz's Sandwich Shop loaned $12,000 to Mark Henry for one year at 6 percent…

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

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: A firm acquires a warehouse costing $60,000 on January 31. The firm makes a down payment of $7,000…

A: Interest payable should be recorded for 1 month i.e From 31 January to 28 February.

Q: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest…

A: working note: interest calculation: $30000 *4% = $1200 $22935.30 *4% = $917.41 $15588.01 *4%…

Q: A man owes Php 10,000 with interest at 8% payable semi-annually. Payments are at the beginning of…

A: Loan amount (P) = Php. 10,000 Annual interest rate = 8% Semi annual interest rate (R) = 8%/2 = 4%…

Q: MFT Company borrowed P10,000 from the bank signing a 9%, 3-month note on September 1. Principal and…

A: Amount borrowed = $10,000 Interest rate = 9%  Interest expense = 10,000 x 9% x 1/12 = 75