Current Attempt in Progress Wildhorse Marina has 300 available slips that rent for $800 per season. Payments must be made in full by the start of the boating season, April 1, 2026. The boating season ends October 31, and the marina has a December 31 year-end. Slips for future seasons may be reserved if paid for by December 31, 2026. Under a new policy, if payment for 2027 season slips is made by December 31, 2026, a 4% discount is allowed. If payment for 2028 season slips is made by December 31, 2026, renters get a 23% discount (this promotion hopefully will provide cash flow for major dock repairs). On December 31, 2025, all 300 slips for the 2026 season were rented at full price. On December 31, 2026, 207 slips were reserved and paid for the 2027 boating season, and 63 slips were reserved and paid for the 2028 boating season. (a) Prepare the appropriate journal entries for December 31, 2025, and December 31, 2026. (Credit account titles are automatically indented when tic entored. Do not indont manually. If no optr required colest "bie

Current Attempt in Progress Wildhorse Marina has 300 available slips that rent for $800 per season. Payments must be made in full by the start of the boating season, April 1, 2026. The boating season ends October 31, and the marina has a December 31 year-end. Slips for future seasons may be reserved if paid for by December 31, 2026. Under a new policy, if payment for 2027 season slips is made by December 31, 2026, a 4% discount is allowed. If payment for 2028 season slips is made by December 31, 2026, renters get a 23% discount (this promotion hopefully will provide cash flow for major dock repairs). On December 31, 2025, all 300 slips for the 2026 season were rented at full price. On December 31, 2026, 207 slips were reserved and paid for the 2027 boating season, and 63 slips were reserved and paid for the 2028 boating season. (a) Prepare the appropriate journal entries for December 31, 2025, and December 31, 2026. (Credit account titles are automatically indented when tic entored. Do not indont manually. If no optr required colest "bie

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter6: Using Credit

Section: Chapter Questions

Problem 6FPE: Using overdraft protection line. Grace Wang has an overdraft protection line. Assume that her...

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Sarasota Marina has 300 available slips that rent for $700 per season. Payments must be made in full by the start of the boating season, April 1, 2021. The boating season ends October 31, and the marina has a December 31 year-end. Slips for future seasons may be reserved if paid for by December 31, 2021. Under a new policy, if payment for 2022 season slips is made by December 31, 2021, a 4% discount is allowed. If payment for 2023 season slips is made by December 31, 2021, renters get a 17% discount (this promotion hopefully will provide cash flow for major dock repairs).On December 31, 2020, all 300 slips for the 2021 season were rented at full price. On December 31, 2021, 166 slips were reserved and paid for the 2022 boating season, and 50 slips were reserved and paid for the 2023 boating season.(a) Prepare the appropriate journal entries for December 31, 2020, and December 31, 2021
Compensated Absences. Data: Poplar Fabrication grants its employees 2 weeks vacation each year. Unused are taken the next year. In 2024 there were700 weeks of unused vacation. The employees earned an average wage of $900 per week. In 2025 the 700 weeks were taken with a 5 Percent wage increase. Required: 1. Prepare the Journal entry for vacation weeks earned, but not taken in 2024. Prepare the journal entry for the vacation weeks taken in 2025. ( hint 5% raise)
Jung & Newbicalm Advertising (JNA) recently hired a new creative director, Howard Rachell, for its Madison Avenue office in New York. To persuade Howard to move from San Francisco, JNA agreed to advance him $140,000 on April 30, 2021, on a one-year, 10 percent note, with interest payments required on October 31, 2021, and April 30, 2022. JNA issues quarterly financial statements on March 31, June 30, September 30, and December 31. Required: Prepare journal entries to record the note’s issuance, interest earned, and interest payments received for each quarter and on each payment date. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to whole dollar amount) To record the promissory note created on April 30, 2021. (TIP: See Demonstration Case B for a similar problem.) To record the interest accruals at each quarter-end and interest payments at each…
Using overdraft protection line. Grace Wang has an overdraft protection line. Assume that her October 2020 statement showed a latest (new) balance of $862. If the line had a minimum monthly payment requirement of 5 percent of the latest balance (rounded to the nearest $5 figure), what would be the minimum amount that she’d have to pay on her overdraft protection line?
Present Values Use Present Value Tables or your calculator to complete the requirements below. Phillips Enterprises signed notes to make the following two purchases on January 1, 2020: new piece of equipment for $60,000, with payment deferred until December 31, 2021. The appropriate interest rate is 9% compounded annually. small building from Richter Construction. The terms of the purchase require a $75,000 payment at the end of each quarter, beginning March 31, 2020, and ending June 30, 2022. The appropriate interest rate is 2% per quarter. Required: Round your answers to the nearest cent, if rounding is required. 1. Complete the information needed to prepare a cash flow diagrams for these two purchases. a. n = years i = % per year Amount of Payment or Deposit 1/1/20 12/31/21 Unknown present value amount $ b. n = quarters i = % per quarter Amount of Payment or Deposit 1/1/20 3/31/20 6/30/20 9/30/20 6/30/22 Unknown present…
Question Content AreaOn January 1, 2019, Olvert Corp. signed a contract to have Bob's Builders construct a distribution center at a cost of $10,000,000. It was estimated that it would take two years to complete the project. Also on January 1, 2021, to finance the construction cost, Tolvin borrowed $10,000,000 payable in five annual installments of $4,000,000 plus interest at the rate of 6%. During 2021, Tolvin made the following construction-related expenditures: Date Amount 2/1 $2,200,000 5/1 $1,700,000 8/1 $ 700,000 11/1 $ 400,000 What amount should Tolvin report as capitalized interest at December 31, 2021? $300,000 $207,000 $150,000 $621,000
A price company from time to time embarks on a research program when a special project seems to offer possibilities in 2019 the company expands $325,000 on a research project, but by the end of 2019, it is possible to determine whether any benefits will be driven from it. What account should be charged from 325,000 and how should be shown in the financial statement? Additional engineering and consulting costs incurred in 2021 are required to advance the design of the project in the manufacturing stage. Total $60,000. These costs enhance the design of the product considerably. Discuss the proper account treatment for this cost.
Use the following information for questions 7 to 8: Sarah Company started construction of its administration building at an estimated cost of P50,000,000 on January 1, 2020. The construction is expected to finish by December 31, 2022. Sarah has the following debt obligations outstanding during 2020: Construction loan - 12% interest payable semiannually, issued December 31, 2019 P 20,000,000 Short-term loan - 10% interest payable monthly, principal payable at maturity on January 1, 2021 14,000,000 Long-term loan - 11% interest payable on January 1 of each year. Principal payable on January 1, 2024 10,000,000 The weighted-average of the accumulated expenditures during 2020 was P36,000,000. How much interest expense should Sarah Company report in 2020? ans: 833,333 What amount of interest incurred in 2020 should be included in the cost of the building being constructed? ans: 4,066,667 Provide solutions.
Assume the following scenarios.Scenario 1: During 2021, The Hubbard Group provides services of $900,000 for repair of a state highway. The company receives an initial payment of $300,000 with the balance to be received the following year.Scenario 2: Rolling Stone magazine typically charges $80 for a one-year subscription. On January 1, 2021, Herman, age 72, purchases a one-year subscription to the magazine and receives a 15% senior citizen discount.Scenario 3: During 2021, Waste Management provides services on account for $30,000. The customer pays for those services in 2022.Scenario 4: During 2021, Sysco Corporation sells grocery items to one of its customers for $260,000 on account. Cash collections on those sales are $180,000 in 2021 and $60,000 in 2022. The remaining $20,000 is written off as uncollectible in 2022.Required: For each scenario, calculate the amount of revenue to be recognized in 2021.
Please answer within 40mins, it would be a great help.Thanks in advance The Great Company started the construction of a building on March 1, 2020 and finished it on June 30, 2021. You have the following information about the expenditures incurred on the construction in 2020: March 1 $120,000 April 30 290,000 October 1 340,000 November 1 275,000 The Great company took out a one-year loan of $500,000 on April 1, 2020. The annual interest rate is 6%. The company’s general borrowings are as follows: Amount Annual interest rate 2-year Note payable, issued on March 1, 2019 $120,000 6% 1-year bank loan taken out on April 1, 2020 210,000 4% 2-year bank loan taken out on October 1, 2018 340,000 3% Required- Assuming IFRS, determine the carrying value of the asset under-construction on December 31, 2020.
Doeren Inc. began constructing a building for its use on January 1, 2022. All costs associated with the construction are being debited to an account called “Construction-in-Progress.” The construction will take approximately 24 months. Weighted-average expenditures for 2022 have already been determined to be $5,000,000. The company has one specific, as well as two non-specific loan borrowings. Details are as follows: Specific Loan Borrowing: $4,000,000 loan at 9% taken out 1/1/2022 and due in 2025. Non-specific Borrowings: Note #1: $2,000,000 at 10%. This loan was outstanding for all of 2022 and is due in 2023. Note #2: $500,000 at 12%. This loan was outstanding for all of 2022 and is due in 2024. If the company has already accrued and paid the 2022 interest costs on these three loans by debiting “Interest Expense” and crediting “Cash”, what adjusting journal entry should be made on 12/31/22 to capitalize interest in 2022?
May I get complete and correct answer with working for all . Thanks 1. The company can purchase the equipment by borrowing $218,000 with a 25-month, 12% installment note. Payments of $9,898.67 are due at the end of each month, and the first installment is due on January 31, 2024. Record the issuance of the installment note payable for the purchase of the equipment. 2. The company can sign a 25-month lease for the equipment by agreeing to pay $7,900.78 at the end of each month, beginning January 31, 2024. At the end of the lease, the equipment must be returned. Assuming a borrowing rate of 12%, record the lease. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 3. As of January 1, 2024, does the installment note or the lease have a greater effect on increasing the company’s amount of reported debt, and by how much? (Round other intermediate and final answers to the nearest whole dollar amount.) 4. Suppose the…