M10-6 (Algo) Recording Notes Payable [LO 10-2] Part 1Skip to question[The following information applies to the questions displayed below.] Greener Pastures Corporation borrowed $1,250,000 on November 1, 2021. The note carried a 9 percent interest rate with the principal and interest payable on June 1, 2022. (a) The note issued on November 1.(b) The interest accrual on December 31. 1. Indicate the effects of the amounts for the above transactions. (Enter any decreases to assets, liabilities, or stockholders equitywith a minus sign. Do not round intermediate calculations.)AssetsLiabilitiesStockholders' Equity(a)CashO 1,250,000 O =Notes Payable (long-term)X 1,250,000 +(b)Interest Expense18,750 O+Interest PayableO (18,750)

Since basic accounts equal is Assets = Liabilities + Owners equity

Greener Pastures Corporation borrowed $1,250,000 on November 1, 2021. The note carried a 9 percent interest rate with the principal and interest payable on June 1, 2022. (a) The note issued on November 1. (b) The interest accrual on December 31.

Greener Pastures Corporation borrowed $1,250,000 on November 1, 2021. The note carried a 9 percent interest rate with the principal and interest payable on June 1, 2022. (a) The note issued on November 1. (b) The interest accrual on December 31.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 6BE

See similar textbooks

Related questions

Q: How much revenue does Hideki recognize on January 1, 2022?

A: Solution:- Given, On January 1, 2022 Hideki Matsuyama provides services in exchange for a $10,000…

Q: The Express Company is preparing its cash budget for the month of June. The following information is…

A: Cash disbursements are projected outflows from the firm to meet their commitments to pay the spend…

Q: Among its divisions, Textron Inc., owns Kelly Aerospace, and Cessna Aircraft. The company is…

A: A. As the manufacturing capacity is 25000, even after supplying to customer 20000 magnetos there…

Q: A and B form a partnership on January 1 of Year 1. Each makes a cash contribution to the partnership…

A: A and B form a partnership on January 1 of Year 1. Each makes a cash contribution to the…

Q: Sunland, Inc. has three divisions: Bud, Wise, and Er. The results of operations for May, 2022 are…

A: The question is related to discontinuing a product. The details are given.

Q: 15.4A The statements of financial position and additional information relating to Pennylane Ltd are…

A: Cash flow statement A cash flow statement is one of the important financial statements that depict…

Q: 5. Lemuel Office Equipment Corporation manufactures two types of filing cabinets-Deluxe and…

A: The question is related to Traditional Costing and Activity Based Costing. The details are given.…

Q: 1. Cash balance according to the company's records at August 31, $25,520. 2. Cash balance according…

A: Introduction: Bank Reconciliation statement: To reconcile the difference between bank book and cash…

Q: isa is a 30 years old woman that lives in Kuala Lumpur. She formed a cosmetic company called Lisa…

A: Company A company refers to the voluntary association of the persons joined together for a common…

Q: The management of Marigold Industries estimates that credit sales for August, September, October,…

A: The cash collection is done as per the collection schedule. Collection for October include 25% of…

Q: At what amount should the land be recorded? b.At what amount should the new office building be…

A: Sandhill Chrome Bumpers bought two acres of land with an old office building on it that was deemed…

Q: Beth's business purchased only one asset during the current year (a full 12-month tax year). On…

A: Solution:- Calculation of the maximum depreciation expenses as follows under:-

Q: Rip Tide Company manufactures surfboards. Its standard cost information follows: Standard Standard…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: a. Determine the net income reported by Curwen Inc. for the year ended December 31. $fill in the…

A: Answer:

Q: Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced…

A: Variable Costing: Variable costing is a concept in management accounting that refers to the cost of…

Q: If a cash priority program is prepared, which partner is paid first and how much is the total…

A: Liquidation is the act which means that it is a process through which the existence of the company…

Q: A machine that cost $105,000 has an estimated residual value of $5,000 and an estimated useful life…

A: Depreciation is charged against the value of fixed assets. It can be calculated by using the…

Q: What are the process during a committee meeting?

A: A committee meeting is a formal gathering of a subgroup within an organisation who come together to…

Q: A machine has a first cost of P97,198.62 and has an expected salvage value after 10 years…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Cobb Department Store sells gift certificates redeemable only when merchandise is purchased. These…

A: Unearned revenue is the amount of revenue collected, but the services have not been performed yet or…

Q: What is the interest income for the year 2023? How much is the total proceeds of Squirtle for the…

A: Notes payable are a liability account in which the borrower records a written promise to repay the…

Q: The balance in “Retained Earnings” on January 1, 2019 for Glored Corporation was $575,000. During…

A: Retained earnings statement is an essential part of the financial statement. The ending balance can…

Q: On January 1, 2022, Frank Co. and Richard, Inc. combined. As of this date, the fair values of the…

A: Net Assets: Net assets is the adjusted value determined by deducting the total liabilities from the…

Q: On January 1, 2022, Frank Co. and Richard, Inc. combined. As of this date, the fair values of the…

A: Facts of the cases :- Richard…

Q: Kevin Montgomery Retail seeks your assistance to develop cash and other budget information for May,…

A: Solution... Ending inventory = 125% of next month's sales Ending inventory of April = Sales of…

Q: What is the consolidated depreciation expense of equipment for the year ended December 31, 2010

A: The Consolidated Depreciation expense of equipment for the year ended 31 December 2011 is P5,25,000…

Q: Explain the Advantage and Disadvantage of Common Share

A: The advantages and disadvantages of Common shares are explained hereunder : Common shares are the…

Q: From the following, calculate the cost ratio and the cost of ending inventory to the nearest cent…

A: Retail inventory method refers to an accounting method which is used by the companies to compute the…

Q: Determine the account receivable balances at March 31, 2022.

A: Clients usually pay 60% of their fee in the month that service is provided, 30% the month after, and…

Q: Suppose that a company has fixed costs of $22 per unit and variable costs $9 per unit when 15,000…

A: A "fixed cost" is a cost that does not change as the quantity of goods or services produced and sold…

Q: Variable Overhead Spending and Efficiency Variances,Columnar and Formula ApproachesRath Company…

A: The difference between the actual cost and the anticipated (or planned) cost is known as an…

Q: any started op n and the com e market. As a n

A: Auditing is the method which has been carried out by the auditor and during the process auditor…

Q: tirst cost for E M&O for A salvage value Proc First

A: Given: Two alternatives A and B is: 0 = -53,000+ 21,000(P/A, ∆i*B-A,5) + 80000(P/F, ∆i*B-A,5)

Q: A sneaker outlet has made the following wholesale purchases of new running shoes: 12 pairs at…

A: As per FIFO, the ending inventory would consist of the last inward items as the first items would be…

Q: of product but actually produced only 7,400 units. Actual fixed overhead costs were $286,100.…

A: The standard cost variance is the difference between a standard cost and an actual cost.

Q: In 2021, BB In., a public company, purchased and sold the following as Purchase price $13,250 $…

A: Taxable income as the name suggests is the part of income that is taxable by law for core functions…

Q: The following is data collected by Bees Co. for the month of June: Static budget data: Sales…

A: The variance is the difference between the actual data and standard output of the production.

Q: Key figures for Apple and Google follow. $ millions Cash and equivalents Accounts receivable, net…

A: Gross Margin Ratio: In business, the gross margin ratio is the percentage of each sales dollar that…

Q: Calculate cost of goods sold and ending inventory for Emergicare's bandages orders using FIFO, LIFO…

A: Inventory valuation is based on the flow of exemption used by the company. There are many methods…

Q: Refer to companies Act 992 (2019) in Ghana and use references

A: Business- Every business is governed by the environment in which it operates. One of the compliance…

Q: Hello, in the above question 3 on the change in policy on the depreciation why not calculate the…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear. There are…

Q: Cash Budgets The management accountant at Genus Manufacturing Company, Karen Cranston, is in the…

A: A cash budget is a document produced to help a business manage their cash flow. A cash budget is…

Q: Barker, Inc. had reported the folowing details for the year ended December 31, 2019: Net sales…

A: The asset turnover ratio is calculated as ratio of sales and average total assets

Q: Ivanhoe Creations purchased 7100 feet of copper tubing at a price of $2.50 per foot and used 7240…

A: Material price variance = Actual quantity × (Standard cost per unit - Actual cost per unit)

Q: Rex, a Filipino residing in Laguna, has the following income for 2021: Compute the income subject…

A: To determine the income of REX which will be subject to regular tax, the very first step is to…

Q: Class Exercise – Crafting of Financial statements Develop the Statements of P&L and Financial…

A: The question is related to Profit and Loss Account and Financial Position as on September 30th,…

Q: For each situation below identify and explain the threat and one fundamental principle that is…

A: Solution Fundamental principles is the principle from which other truth can be derived.

Q: Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at…

A: Taxable Income For the calculation of the taxable income first to taken the gross income and made…

Q: Cost of Gross Goods Sales Net Ending Profit Beg Inventory Purchases Inventory Net Sales returns…

A: Formula: Gross profit - Net sales - cost of goods sold

Q: Direct Material Input Chemical Mix Variance Yield Variance Efficiency Variance Purchase Price…

A: Total direct material variance Purchased Direct Material AQ*AP - SQ*SP Variance…

Question

M10-6 (Algo) Recording Notes Payable [LO 10-2] Part 1

Skip to question

[The following information applies to the questions displayed below.]

Greener Pastures Corporation borrowed $1,250,000 on November 1, 2021. The note carried a 9 percent interest rate with the principal and interest payable on June 1, 2022.

(a) The note issued on November 1.
(b) The interest accrual on December 31.

1. Indicate the effects of the amounts for the above transactions. (Enter any decreases to assets, liabilities, or stockholders equity
with a minus sign. Do not round intermediate calculations.)
Assets
Liabilities
Stockholders' Equity
(a)
Cash
O 1,250,000 O =
Notes Payable (long-term)
X 1,250,000 +
(b)
Interest Expense
18,750 O+
Interest Payable
O (18,750)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Guarantees and Warranties

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

If equity equals $100,000, which of the following is true? A. Assets exceed liabilities by $100,000. B. Liabilities exceed equity by $100,000. C. . D. None of the above is true.
For each of the following independent cases, fill in the blank with the appropriate dollar amount. Assets = Liabilities + Owners' Equity Case 1 $147,700 = $65,600 + $ ? Case 2 $508,200 = $ ? + $194,200 Case 3 $ ? = $170,400 + $199,200
Indicate the effect of each of the following transactions on (1) the current ratio, (2) working capital, (3) stockholders’ equity, (4) book value per share of common stock, and (5) retained earnings. Assume that the current ratio is greater than 1:1. (Indicate the effect of each transactions by selecting "+" for increase, "–" for decrease, and "NC" for no change.) Collected account receivable. Wrote off account receivable. Converted a short-term note payable to a long-term note payable. Purchased inventory on account. Declared cash dividend. Sold merchandise on account at a profit. Issued stock dividend. Paid account payable. Sold building at a loss. Current RatioWorking CapitalStockholders' EquityBook ValueRetained Earnings a. b. c. d. e. f. g. h. i.
Calculate the missing value (in $) according to the accounting equation. Assets Liabilities Owner's Equity $15,808,000 $8,338,500 $
Provide anwers for the blanks in attached table. Indicate whether the following independent transactions increase (+), decrease (-), or do not affect (NE) the current ratio, the amount of working capital, and cash from operations. Also indicate the amounts of any effects. The company presently has a current ratio of 2 to 1 along with current liabilities of $160,000.
Determine the missing amount for each of the following: Assets = Liabilities + Owner's equity a. x = $556,000 + $3,374,000 b. $6,111,200 = x + $5,725,000 c. $2,150,000 = $812,500 + x
Calculate the following for Co. XYZ: a. Current ratio b. Debt ratio Assets: Cash and marketable securities $400,000 Accounts receivable 1,415,000 Inventories 1,847,500 Prepaid expenses 24,000 Total current assets $3,686,500 Fixed assets 2,800,000 Less: accumulated depreciation 1,087,500 Net fixed assets $1,712,500 Total assets $5,399,000 Liabilities: Accounts payable $600,000 Notes payable 875,000 Accrued taxes Total current liabilities $1,567,000 Long-term debt 900,000 Owner's equity Total liabilities and owner's equity Co. XYZ Income Statement: Net sales (all credit) $6,375,000 Less: Cost of goods sold 4,375,000 Selling and administrative expense 1,000,500 Depreciation expense 135,000 Interest expense Earnings before taxes $765,000 Income taxes Net income Common stock dividends $230,000 Change in retained earnings
Determine the missing amounts. (Hint: For example, to solve for (a), Assets – Liabilities = Stockholders’ Equity = $35,000.) Ayayai Company Kingbird Company Michelangelo Company Raphael CompanyJanuary 1, 2019 Assets $ 105,000 $154,000 $ (g) $210,000 Liabilities 70,000 (d) 105,000 (j)Stockholders’ equity (a) 84,000 63,000 140,000 December 31, 2019 Assets (b) 191,800 280,000 (k)Liabilities 77,000 105,000 (h) 112,000 Stockholders’ equity 56,000 (e) 182,000 196,000 Stockholders’ equity changes in year Additional investment (c) 21,000 14,000 21,000 Dividends 14,000 (f) 19,600 14,000 Total revenues 490,000 588,000 (i) 700,000 Total expenses 462,000 539,000 478,800 (l)
Determine the effects of the following transactions on Current assets, Current liabilities, and Working Capital. Write “Inc” for an Increase, “Dec” for a Decrease, or “NE” if there is No Effect. Write your answers in the blanks provided. Current Asset Current Liability Net Working Capital 1. Sale of merchandise on account 2. Acquired shares of ABS CBN for cash 3. Pays the long-term debt of P150,000 4. Sells old machine for P10,000 cash 5. Issued shares of stock to cash investors 6. Declared cash dividends 7. Payment of advance rentals (asset method) 8. One year loan from a bank 9. Issued shares of stock to pay short term loan 10. Collection of receivables 11. Cash redemption of bonded debt 12. Six months interest received in advance(liability method is used) 13. Issued stock dividends 14. Payment of cash dividends declared in #6 15. Sell of equipment for P50,000;…
At the start of the period, 2 pointsMN Business has total assets ofP500,000 and total liabilities ofP300,000. During the period, thebusiness earned total income ofP1,000,000 and incurred totalexpenses of P640,000. No additionalinvestments or withdrawals weremade by the owner. How much is thetotal equity at the end of the period?
Classify each of the following items as: Inflow or Outflow. If neither, indicate Not Applicable. Particulars Amount Classification 1 Cash +600 2 Accounts Payable -1,200 3 Notes Payable +800 4 Long-term Debt -2,500 5 Inventory +400 6 Building +600 7 Accounts Receivable -900 8 Net Profits +700 9 Depreciation +200 10 Repurchase of shares of stock +500 11 Cash Dividends +300 12 Sale of Stock +1,300 13 Transportation Equipment -500 14 Treasury Stock -300 15 Ordinary Shares +1,500
Assume that the Accounts receivables, notes receivables, cash balance and inventory of the company is OMR 500, OMR 700, and OMR 600 and OMR 700, respectively. The equity and total liabilities are OMR 2000 and OMR7000 respectively. From the following given options identify the fixed assets of the company a . OMR 2500 b . OMR 6500 c None of the given options d . OMR 9000