Grant Co. had the following liabilities at December 31, the end of its fiscal year: Accounts Payable $56,000 Salaries Payable 12,200 Unearned Fees 8,900 Income Taxes Payable 3,200 Notes Payable 240,000 The note payable is an 8-year note with $30,000 due in the next year. Dronare the liahilitios cection of the balance choot for the compan

Q: Abardeen Corporation borrowed $105,000 from the bank on October 1, Year 1. The note had an 4 percent…

A: Interest expense is an expense which is reported on expense side under the statement of profit or…

Q: On July 8th, Jones Inc. issued a $75,600, 12%, $120 Day note payable to Miller company. Assume that…

A: From July 8th to July 31st = 23 days

Q: On June 8, Alton Co. issued an $77,100, 7%, 120-day note payable to Seller Co. Assume that the…

A: Interest:   An interest is the cost of the funds loaned to the business by any lender.

Q: January 1, Year 1, Luzak Company issued a $12,000, 4-year, 9% installment note to McGee Bank. The…

A: Journal Entry:  It is the first and foremost procedure in an accounting cycle. The transactions are…

Q: A company had the following accounts and balances on December 31, 2020: Accounts Receivable $ 6,000…

A: Current Liabilities of a company consist of Short - term financial obligations that are due…

Q: Martinez Co. borrowed $56,952 on March 1 of the current year by signing a 60-day, 8%,…

A: Interest expense for 60 days  = Amount borrowed×interest rate × 60 days/360 days

Q: Abardeen Corporation borrowed $105,000 from the bank on October 1, Year 1. The note had an 4 percent…

A: Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: On October 1st, a company borrowed $60,000 from Eighth National Bank on a 1-year, 7% note. If the…

A: Adjusting entries are entries that are passed at the end of the period to accurately present income,…

Q: At December 31 year-end, Crain Corporation has an $8,400 note receivable from a customer. Interest…

A: A note receivable is a document which is written promise made which indicates an amount to be…

Q: Glover Corporation's trial balance for December 31, the end of its fiscal year, included the…

A: Non current liabilities forms part of an organisation's balance sheet which includes long term…

Q: Abardeen Corporation borrowed $105,000 from the bank on October 1, Year 1. The note had an 4 percent…

A: Principal is the amount lent to a person by another person for a return of benefit called as…

Q: Martinez Co. borrowed $52,557 on March 1 of the current year by signing a 60-day, 12%,…

A: Notes payable is categorized as a negotiable instrument signed by the promisor who agreed to pay a…

Q: Martinez Co. borrowed $58,220 on March 1 of the current year by signing a 60-day, 11%,…

A: Notes payable is a negotiable instrument signed by the promisor who agreed to pay a certain amount…

Q: Liabilities on the Balance Sheet For each of the following situations, indicate the amount shown…

A: Current Liabilities  are  the  obligations that is payable within one year. Long term liabilities…

Q: On the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a seven-year, 7%…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On July 8, Jones Inc. issued an $70,600, 8%, 120-day note payable to Miller Company. Assume that the…

A: Notes payable is a negotiable instrument where a borrower records a promise to pay a certain amount…

Q: Mackenzie Corp. is preparing the December 31, 2020, year-end financial statements, Following are…

A: Adjusting journal entries are accounting entries made at the close of the reporting year of a…

Q: Monmouth Limited has a December 31 year-end. On December 1, 2020 Monmouth had the following current…

A: Current Liabilities: It is the debt that a company owes  which must be cleared  within one year.

Q: On June 30, Year 3, Franklin Company's total current assets were $496,000 and its total current…

A: Total current assets after issuing the note =Total current assets before issuing the note + Cash…

Q: Q#1. Show the size of each of the equal quarterly payments made to pay off the principal and the…

A: Loan amount =$15,000 Interest rate  =10% quarterly rate=10%/4 (2.5%) present value of annuity factor…

Q: Paid the amount due on the note to Fargo Bank at the maturity date. Prepare journal entries for all…

A: Please see the next steps for solution.

Q: On November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $20,700. What…

A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.

Q: On January 1, the first day of the fiscal year, Shiller Company borrowed $86,000 by giving a…

A: Notes payable is a form of amount borrowed or taken out from some other person. This is a liability…

Q: On December 31 year-end, Crain Corporation has an $8,400 note receivable from a customer. The…

A: A note receivable is a document which is written promise made which indicates an amount to be…

Q: Bramble Wholesalers Ltd. has a December 31 year end. The company incurred the following transactions…

A: Adjusting journal entry on 31 December:- Date Account Titles and Explanation Debit Credit Dec…

Q: PHAGE COMPANY estimates its annual warranty expense at 4% of net sales. The following balances are…

A: Estimated warranty expenses = sales x 4% = 1500000 x 4% = 60,000

Q: At the beginning of April of the current year, Nickel Pork Corp. borrowed 1,000,000 for 1 yr from…

A: Part (1)   Date Particulars  Amount (Dr) Amount (Cr) 01-Apr Bank A/c Dr  880100     Finance…

Q: On June 1, Davis Inc. issued an $84,000, 5%, 120-day note payable to Garcia Company. Assume that the…

A: Answer: The exact answer is $1,061 . So the nearest option to $1,061 is option D - $1,050 .

Q: Ventura Company adjusts its accounts monthly and closes its accounts on December 31. OnOctober 31,…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: A company is holding a $6,000, 90-day, 6% note receivable, dated December 1.  The entry to record…

A: The entry to record accrued interest at the end of its fiscal year is as follows:- Accrued Interest…

Q: A company isues a note receivable in place of an outstanding accounts receivable balance. The note…

A: Notes Receivables Issued: It is possible to get a note receivable by writing a promise to receive a…

Q: For each of the following situations, indicate the amount shown as current or long-term liability on…

A: The current liability is the liability which is to be paid off within one year.

Q: Mackenzie Corp, is preparing the December 31, 2020, year-end financial statements. Following are…

A: Adjusting Entries :— It is the journal entry made at the ending the accounting period to adjust the…

Q: BE11-2 Peralta Company borrows $60,000 on July 1 from the bank by signing a $60,000, 10%, one-year…

A: Journal entry refers to a recording/ classifying of business transactions into books of accounts…

Q: On April 1, Ringo Company borrowed $20,000 from its bank by issuing a 9%, 12-month note, with the…

A: Under such type of loan arrangement as in the given case, the borrower obtains certain amount of…

Q: The balance of the credit line at yearend is:

A: The bank credit line as on September 30, 2020 is $25,300 and as it is the amount which Gibco Limited…

Q: At December 31, 20X1, Evans Corp. has a note payable balance of $100,000. This note was originally…

A: Long-term liability = Note payable balance - installment to be paid next year = $100000 - 15500 =…

Q: Egnab Inc. had the following transactions during the current fiscal year ending December 31 .…

A: Notes Payable Long-term obligations known as notes payable represent the sums that a firm owes its…

Q: For each of the following situations, indicate the amount shown as current or long-term liability on…

A: a) Long-term notes payable are similar to short-term interest-bearing notes payable except the term…

Q: abardeen corporation borrowed 58,000 from the bank on october 1, year 1.  The note had a 4 percent…

A: Note payable: Note payable refers to the liability of the business, as business borrow money against…

Q: On June 1, Davis Inc. issued an $84,000, 5%, 120-day note payable to Garcia Company. Assume that the…

A: Solution: Days in current year = June 30 - June 1 = 29 days Days in following year = 120 - 29 = 91…

Q: Abardeen Corporation borrowed $105,000 from the bank on October 1, Year 1. The note had an 4 percent…

A: Interest:- An interest is the compulsory charge which is paid by the borrower to the lender of money…

Q: Ramsay's Company Statement of Financial Position as at December 31, shows notes payable totaling…

A: Intermediate debt is an debt that is payable with 2 to 10 years.

Q: On December 1, a company signed a $6,000, 90-day, 5% note payable, with principal plus interest due…

A: Answer:   Option b.

Q: At 1 July 20X3 a limited liability company had an allowance for receivables of $83,000. During the…

A: We have the following information: At 1 July 20X3 a limited liability company had an allowance for…

Q: On July 8, Jones Inc. issued an $76,900, 10%, 120-day note payable to Miller Company. Assume that…

A: Answer:   Option c.

Q: At year-end, Roth Company issued a P1,000,000 face value note payable to Wake Company in exchange…

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

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

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.