b. DIStinguisnUe The following transactions were completed by Austin Ltd over a 3-month period: Nov 10: Received from G. R. Jackman, a customer, a Tk. 4,000, 60-day, 9% note dated Nov Nov 11: Received from Leshner on account, a Tk. 1,800, 60-day, 12% note dated Nov.10. Nov 20: Discounted Leshner'S note at the bank at 10%. Nov 24: Discounted Jackman's note at the bank at 10%. C. Dec. 3: Received a Tk. 2950, 30-day, non-interest bearing note darted Dec. 1 from Prado, crediting Parado's account at face value. Dec. 7: Discounted Parado's note at the bank at 9%. Dec. 29: Received from Averett, a Tk.500, 90-days, 12% note dated Dec.14 and made by B. Realty Inc. gave the customer credit for the maturity value of the note less discount at 10%. Dec. 29: Received a Tk. 3,500, 10-day, 7% note dated December 29 from S. Sulivan, a customer. Jan 10: Received notice from the bank that Jackman's note was not paid at maturity. A protest fee of Tk.15 was charged by the bank. Jan 22: Received a Tk.15,000, 120-day, 9% note dated January 22 from Thorgood, a customer. Jan 28: Received payment on Sulivan's note, including interest at 10% on the face value from the maturity date. Prepare journa! entries in the books of Austin Ltd.

b. DIStinguisnUe The following transactions were completed by Austin Ltd over a 3-month period: Nov 10: Received from G. R. Jackman, a customer, a Tk. 4,000, 60-day, 9% note dated Nov Nov 11: Received from Leshner on account, a Tk. 1,800, 60-day, 12% note dated Nov.10. Nov 20: Discounted Leshner'S note at the bank at 10%. Nov 24: Discounted Jackman's note at the bank at 10%. C. Dec. 3: Received a Tk. 2950, 30-day, non-interest bearing note darted Dec. 1 from Prado, crediting Parado's account at face value. Dec. 7: Discounted Parado's note at the bank at 9%. Dec. 29: Received from Averett, a Tk.500, 90-days, 12% note dated Dec.14 and made by B. Realty Inc. gave the customer credit for the maturity value of the note less discount at 10%. Dec. 29: Received a Tk. 3,500, 10-day, 7% note dated December 29 from S. Sulivan, a customer. Jan 10: Received notice from the bank that Jackman's note was not paid at maturity. A protest fee of Tk.15 was charged by the bank. Jan 22: Received a Tk.15,000, 120-day, 9% note dated January 22 from Thorgood, a customer. Jan 28: Received payment on Sulivan's note, including interest at 10% on the face value from the maturity date. Prepare journa! entries in the books of Austin Ltd.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

See similar textbooks

Similar questions

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.
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 December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?
Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
The following notes receivable transactions occurred for Harris Company during the last three months of the current year. (Assume all notes are dated the day the transaction occurred.) Oct. 9 Received a $5,000, 12%, 60-day note from K. Weedon, a customer, for merchandise originally purchased on account. 12 Received a $6,000, 10%, 90-day note from M. Black, a customer, for merchandise originally purchased on account. 15 Sold the Weedon note with recourse at the bank at 14%. The fair value of the recourse liability is estimated to be $1,230. Nov. 11 Sold the Black note with recourse at the bank at 15%. The fair value of the recourse liability is estimated to be $850. 16 Received an $8,000, 12%, 60-day note from B. Butcher, a customer, for merchandise originally purchased on account. 20 Received a $6,000, 11%, 120-day note from D. Goldman, a customer, for merchandise originally purchased on account. Dec. 1 Received a $9,000, 13%, 60-day note from S. Lambert, a…
The following note transactions occurred during the year for Towell Company:On Nov. 25, Towell issued a 90-day, 9%, note payable for $40,000 to Hyatt Company for merchandise.On Dec. 7, Towell signed a 120-day, $60,000 note with the bank at 10%.On Dec 22, Towell gave Barr, Inc. a $12,000, 10%, 60-day note in payment of its account.Calculate the amount of the necessary interest accrual for each note payable at December 31.(Round to nearest whole dollar.) Lender Interest accrual Hyatt Company note Bank note Barr, Inc. note
2. On March 1, 20x1, ABC assigned its P4,000,000 accounts receivable to XYZ Bank in exchange for a 2-month, 12% loan equal to 75% of the assigned receivables. ABC received the loan proceeds after a 2% deduction for service fee based on the assigned notes. During March, P2,500,000 were collected from the receivables. Sales returns and discounts amounted to P50,000. By the end of March, equity on assigned accounts shall be The correct answer is: 950,000 REQUIRED: Provide the step-by-step solution.