CASH – 500,000 ACCOUNTS RECEIVABLE – 300,000 NOTES RECEIVABLE (2 YEARS) – 200,000 NOTES RECEIVABLE (TRADE) – 300,000 NOTES RECEIVABLE – 400,000 ACCOUNTS PAYABLE – 600,000 OFFICE EQUIPMENT – 250,0000 NOTES PAYABLE (3 YEARS) – 300,000 BONDS PAYABLE (MATURING IN 6 MOS.) – 300,000 MORTGAGE PAYABLE – 400,000 OWNERS EQUITY, (BEGINNING BALANCE) – 600,000 OWNER DRAWING/WITHDRAWAL – 200,000 NET LOSS – (300,000) How much is the total ending balance of owners’ equity? 600,000 100,000 200,000 300,000

CASH – 500,000 ACCOUNTS RECEIVABLE – 300,000 NOTES RECEIVABLE (2 YEARS) – 200,000 NOTES RECEIVABLE (TRADE) – 300,000 NOTES RECEIVABLE – 400,000 ACCOUNTS PAYABLE – 600,000 OFFICE EQUIPMENT – 250,0000 NOTES PAYABLE (3 YEARS) – 300,000 BONDS PAYABLE (MATURING IN 6 MOS.) – 300,000 MORTGAGE PAYABLE – 400,000 OWNERS EQUITY, (BEGINNING BALANCE) – 600,000 OWNER DRAWING/WITHDRAWAL – 200,000 NET LOSS – (300,000) How much is the total ending balance of owners’ equity? 600,000 100,000 200,000 300,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 4MC: A ski company takes out a $400,000 loan from a bank. The bank requires eight equal repayments of the...

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CASH – 500,000ACCOUNTS RECEIVABLE – 300,000NOTES RECEIVABLE (2 YEARS) – 200,000NOTES RECEIVABLE (TRADE) – 300,000NOTES RECEIVABLE – 400,000ACCOUNTS PAYABLE – 600,000OFFICE EQUIPMENT – 250,0000NOTES PAYABLE (3 YEARS) – 300,000BONDS PAYABLE (MATURING IN 6 MOS.) – 300,000MORTGAGE PAYABLE – 400,000OWNERS EQUITY, (BEGINNING BALANCE) – 600,000OWNER DRAWING/WITHDRAWAL – 200,000NET LOSS – (300,000) What is the total current assets? 1,200,000 1,400,000 1,700,000 1,500,000
CASH – 500,000ACCOUNTS RECEIVABLE – 300,000NOTES RECEIVABLE (2 YEARS) – 200,000NOTES RECEIVABLE (TRADE) – 300,000NOTES RECEIVABLE – 400,000ACCOUNTS PAYABLE – 600,000OFFICE EQUIPMENT – 250,0000NOTES PAYABLE (3 YEARS) – 300,000BONDS PAYABLE (MATURING IN 6 MOS.) – 300,000MORTGAGE PAYABLE – 400,000OWNERS EQUITY, (BEGINNING BALANCE) – 600,000OWNER DRAWING/WITHDRAWAL – 200,000NET LOSS – (300,000) How much is the total current liabilities? 600,000 1,000,000 900,000 1,300,000
Bibimbap Company received from a customer a on-year, P500,000 note bearing annual interest of 8%. After holding the note for four months, Bibimbap discounted the note, without recourse, at Bank of Seoul at a discount rate of 10%. At the date of discounting, Bibimbap would receive cash of choices to the problem P504,000 P522,000 P50,000 P540,000
Chang Co. issued a $50,000, 120-day, discounted note to Guarantee Bank. The discount rate is 6%. Assuming a 360-day year, the cash proceeds to Chang Co. are: Question 29 options: $49,750 $47,000 $49,000 $51,000
Company is contemplating factoring its accounts receivable. The factor will acquire P250,000 of the company’s accounts receivable every 2 months. An advance of 75 percent is given by the factor on receivables at an annual charge of 18 percent. There is a 2 percent factor fee associated with receivables purchased. What is the cost of the factoring arrangement? choose the letter of the correct answera. P30,000.00b. P33,750.00c. P63,750.00d. P103,000.00e. P125,000.00
Chang Co. issued a $40,073, 120-day, discounted note to Guarantee Bank. The discount rate is 8%. Assuming a 360-day year, the cash proceeds to Chang Co. are Select the correct answer. $43,279 $39,004 $40,073 $40,340
Chang Co. issued a $51,600, 120-day, discounted note to Guarantee Bank. The discount rate is 10%. Assuming a 360-day year, the cash proceeds to Chang Co. are ______ .Round your answer to the nearest whole dollar. a.$51,600 b.$56,760 c.$49,880 d.$52,030
Company factored P6,000,000 of accounts receivable to a certain bank at the end of current year. Control was surrendered by Uranus. The factor-bank assessed a fee of 3% and retained a holdback equal to 5% of the accounts receivable. In addition, the factor-bank charged 15% interest computed on a weighted average time to maturity of the accounts receivable of 54 days (use 365 days). What is the amount of cash initially received from factoring?
LISA Corp. received from MIK Corp. a one-year, $375,000 note bearing annual interest of 8%. After holding the note for six months, LISA Corp. discounted the note at PNB at an effective interest rate of 10%. How much is the net cash proceeds from discounting the note? a. $375,000 b. $364,500 c. $384,750 d. $405,000
Chang Co. issued a $42,940, 120-day, discounted note to Guarantee Bank. The discount rate is 9%. Assuming a 360-day year, the cash proceeds to Chang Co. are a.$42,940 b.$43,262 c.$46,805 d.$41,652
Princess EJ Corporation factors P350,000 of accounts receivable with XYZ Financing on a with recourse basis. XYZ Financing will collect the receivables. The receivables records are transferred to XYZ Financing on August 15, 202X. XYZ Financing assesses a finance charge of 2% of the amount of accounts receivable. Also, it reserves an amount equal to 5% of accounts receivable to cover probable adjustments.Requirements:1. What conditions must be met for a transfer of receivables through factoring with recourse?2. Prepare the journal entry on August 15, 202X, for Princess EJ Corporation to record the conditional sale of receivables.
A company factored $100,000 of accounts receivables. The factor discounted the receivables for 9% for the one year planned to take to collect the receivables. Using an annual interest rate of 9%, the present value of the receivables is $100,000 x 0.917 = $91,700. How much cash should the company expect to receive? $91,700 $91,000 $100,000 $108,300