Bondi Bank agrees to lend Tawonga Construction Company Ltd $200 000 on 1 January. Tawonga Construction Company Ltd signs a $200 000, 4%, 9-month note. The entry made by Tawonga Construction Company Ltd on 1 January to record the proceeds and issue of the note is: O Dr Interest Expense 6 000 Dr Cash 194 000 Cr Notes Payable 200 000 O Dr Cash 200 000 Cr Notes Payable 200 000 O Dr Cash 200 000 Dr Interest Expense 6 000 Cr Notes Payable 206 000 O Dr Cash 200 000 Dr Interest Expense 6 000 Cr Notes Payable 200 000 Cr Interest Payable 6 000

Bondi Bank agrees to lend Tawonga Construction Company Ltd $200 000 on 1 January. Tawonga Construction Company Ltd signs a $200 000, 4%, 9-month note. The entry made by Tawonga Construction Company Ltd on 1 January to record the proceeds and issue of the note is: O Dr Interest Expense 6 000 Dr Cash 194 000 Cr Notes Payable 200 000 O Dr Cash 200 000 Cr Notes Payable 200 000 O Dr Cash 200 000 Dr Interest Expense 6 000 Cr Notes Payable 206 000 O Dr Cash 200 000 Dr Interest Expense 6 000 Cr Notes Payable 200 000 Cr Interest Payable 6 000

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%...

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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.
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