Houston Company receives a six-month note from a customer. The note has a face amount of $8,000 and an interest rate of nine percent. What is the total amount of interest income to be received? O$720 O$540 O$360 O$180
Q: et income did Mickey Mouse earn on the note
A: Interest on note receivable = Face value of note receivable * Rate of interest * Number of months…
Q: Jasper makes a $36,000, 90-day, 9% cash loan to Clayborn Company. Jasper's entry to record the…
A: Calculation of Interest amount at maturity date Loan amount - $36,000 Interest rate - 9% Number of…
Q: Assume that you start with a balance of $3900 on your credit card.During the first month you charge…
A: Here, Balance on Credit Card is $3900 APR is 29% Charges for first Month is $400 Charges for Second…
Q: Leek Company receives a $12,000, 3-month, 5% promissory note from Rey Company in settlement of an…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Shady Tree Company issued a note receivable to a customer. The face value of the note was $12,000 at…
A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…
Q: A 90-day, 10% note for $10,000 dated March 15 is received from a customer on account. The face value…
A: The face Value of the note is the amount at which the note is issued. It is the Principal Amount.
Q: FDN Company received a four-month note receivable in the amount of P93,000,000 on September 1. The…
A: The accrued revenue is the revenue earned but not received yet. It is recorded as an asset in the…
Q: On June 19, The business purchases inventory of 220.000 TL including 10% VAT. The business endorses…
A: On June 19, Business purchases inventory Cost of purchase of inventory = 220000 TL Including 10% VAT…
Q: A company received a Note Receivable from a customer for a sale. The 9 percent, 9-month note was…
A: Value of notes receivable $1,50,000 Rate of Interest 9% Period (May 31 to December 31) 7 months…
Q: Customer Bank loaned The Teacup Shoppe money at 6% interest for 90 days. If the interest was $300…
A: Interest rate id 6% Time period is 90days Total interest was $300 To Find: Principal amount…
Q: FDN Company received a four-month note receivable in the amount of PHP41,000,000 on September 1. The…
A: Accrued Income : Accrued Incomes are those incomes which have been earned during the accounting…
Q: On September 1, The business sold merchandise for 33.000 TL (including 10% VAT) FOB Destination. The…
A: Notes payable are the asset of the firm where a borrower gives a written promise to lender to pay…
Q: ABC Company received a four-month note receivable in the amount of P74,000,000 on September 1. The…
A: Introduction: As per accrual concept any income or expenses shall be recognized only when they are…
Q: A 60-day, 6% note for $24,000, dated May 1, is received from a customer on account. The maturity…
A: The maturity value of note is calculated as sum of principal value and interest amount.
Q: e effective rate of interest of the loan?
A: Effective interest rate is calculated as follows; r = (1 + in)n -1 wherer - effective annual ratei -…
Q: On June 22, The business sold merchandise for 11.000 TL (including 10% VAT) FOB Destination. The…
A: Notes: Notes can be defined as a promise made by the borrower to the lender for making the payment…
Q: nterest , a company that you regularly do business with, gives you a $11,000 note. The note is due…
A:
Q: Q1)Zetix borrowed $20,000 on a one-year, 10 percent note payable from the local bank on March 1.…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: On June 1, Vaughn Company borrows $144,000 from First Bank on a 6-month, $144,000, 8% note.
A: Interest is charged on accrual basis
Q: Within 10 days following a sale, a company receives payment of a $20,000 account receivable with…
A: Sales discount = Accounts receivable x rate of discount
Q: On April 25, The business sold merchandise for 55.000 TL (including 10% VAT) FOB Destination. The…
A: When goods are sold out and vat is charged , then vat is the tax payable to the government and not…
Q: A company grants a payment extension to its customer by converting that $15,000 accounts payable to…
A: Interest on 45 days note for 30 days 115000*12%*30/360=$150
Q: Calculating Accrued Interest Likert Company received a 90 day, six percent note receivable for…
A: Calculation of the accrued interest on December 31:Note: Number of days interest accrued from…
Q: Pickett Company received a 90 day, six percent note receivable for $20,000 on November 1. How much…
A: Note receivable amount = $20,000 Due period = 90 days Note received date = November 1
Q: Suppose a company invests in a $50,000 United States Treasury bill at 3.35% interest for 28 days.…
A: Treasury bills: Treasury bills are issued by the government and sold by auctioning these bills…
Q: Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. Jasper's entry to record the collection…
A: Journal entries is recording of the transaction in the accounting journal in a chronological order.…
Q: Max Wholesaler borrowed $2,000 on a 10%, 120-day note. After 45 days, Max paid $700 on the note.…
A: A promissory note is a document containing a promise to pay the amount borrowed along with the…
Q: On October 13, The business sold merchandise for 198.000 TL (including 10% VAT) FOB Destination. The…
A: The selling of assets is recorded by debiting to notes receivable and crediting the machinery…
Q: JAB Consulting received a promissory note of $13,500 at 99% simple interest for 15 months from one…
A: Notes Receivables - Notes Receivable is the promissory note given by the customer for the amount due…
Q: Sunshine Service Center received a 120-day, 6% note for $40,000, dated April 12 from a customer on…
A: Notes receivable is a negotiable instrument that indicates the claims to be paid at a specific date…
Q: FDN Company received a four-month note receivable in the amount of P68,000,000 on September 1. The…
A: Accrued interest income will be calculated in proportion of time for an amount at a specified rate.…
Q: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an…
A: The process of creating financial statements to indicate an entity's financial condition is known as…
Q: At the beginning of a month, a customer owes a credit card company $8480. In the middle of the…
A: A credit card allows the holder to spend for their needs and allows them to pay at a later date…
Q: A 60-day, 5% note for $7,800, dated April 15, is received from a customer on account. The face value…
A: Definition: Receivables: Receivables refer to an amount to be received in future. General…
Q: A company lends its supplier $154,000 for 3 years at a 10% annual interest rate. Interest payments…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: A 180-day note was signed on June 11 for $24, 700. The note has a rate of 9.5%, compounded annually.…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: Calculating Interest on Promissory Notes Receivable Dallas Company receives a six-month note from a…
A: Calculating the value of total amount of interest income for a 6-months note. We have,Total amount…
Q: JAB Consulting received a promissory note of $13,500 at 7% simple interest for 15 months from one of…
A: Frist we need to calculate the maturity value of promissory note by using this equation. Maturity…
Q: Prepare Jun's journal entry assuming the note is honored by the customer on October 31 of that same…
A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…
Q: Company A borrowed $25,000 on October 1 from a bank. The note has an interest rate of 8% and a term…
A: Interest expense is the monetary obligation of the borrower to pay regularly towards the sum…
Q: Lee.com accepted a $70,000, 6 % , 120-day note on July 26. Lee discounts the note on October 28 at…
A: Total days till October 28 = Days left in July + August + September + October 28 = 5+31+30+28 = 94…
Q: ShadyTree Company issued a note receivable to a customer. The face value of the note was $12,000 at…
A: The question is based on the concept of Financial Accounting.
Q: JAB Consulting received a promissory note of $13,500 at 9% simple interest for 15 months from one of…
A: A promissory note refers to a legal instrument in which the promise is made in writing that the…
Q: a company borrowed 12,000 by signing a 120 day promissory note at 15% the total to be paid at…
A: Formula: Interest amount = Principal amount x Interest rate x Time period.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at the end of the month for 12 months. The interest rate is 12% annually. If the monthly payments are $888.49, what is the journal entry to record the cash received on Jan. 1 and the first payment made on Jan. 31?Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.
- Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
- Campus Flights takes out a bank loan in the amount of $200,500 on March 1. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 8%, recognized on December 31. (Round answers to the nearest whole dollar if needed.) A. Compute the interest recognized as of December 31 in year 1 rounded to the whole dollar. B. Compute the principal due in year 1.Sunlight Growers borrows $250,000 from a bank at a 4% annual interest rate. The loan is due in three months. At the end of the three months, the company pays the amount due in full. How much did the company remit to the bank? A. $250,000 B. $10,000 C. $252,500 D. $2,500A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
- McMasters Inc. specializes in BBQ accessories. In order for the company to expand its business, they take out a long-term loan in the amount of $800,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 9%. Each year on December 31, the company pays down the principal balance by $50,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.A business issued a $5,000, 60-day, 12% note to the hank. The amount due at maturity is: A. $4,900 B. $5,000 C. $5,100 D. $5,600Homeland Plus specializes in home goods and accessories. In order for the company to expand its business, the company takes out a long-term loan in the amount of $650,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 8.5%. Each year on December 31, the company pays down the principal balance by $80,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.