How much cash did Thunder Company receive from the bank? *
Q: On May 20, 2021, Gordon Company discounted with recourse a P75,000, 90-day, 8% note that was…
A: Maturity value of the note = Face value of note + interest = P75,000 + (P75,000*8%*90/360) = P75,000…
Q: On June 30, 2020, OPQ Company discounted at the bank a customer P6,000,000, 6-month, 10% note…
A: Note receivable: It can be defined as an asset that represents a right on part of the holder to…
Q: On December 1, 2020, Papa Po Company assigned specific accounts receivable totaling P200,000 as…
A: Written promissory notes grant the receiver, or bearer, the right to obtain the sum specified in an…
Q: Dab Company provides 1,200,000 of its account receivables to investment bank for notes 600,000 on…
A: The account receivables of a company are referred to as the amount that a company has to receive…
Q: On December 1, 2020, Lieza Mae assigned on a non notification basis accounts receivable of…
A: Current liability represents the obligation that has to be paid within a year.
Q: Selkirk Company obtained a $15,000 note receivable from a customer on January 1, 2021. The note,…
A: Given information is: Selkirk Company obtained a $15,000 note receivable from a customer on January…
Q: using 360 days in a year, how much cash did thunder company receive from the bank?
A: Given information is: On september 1 thunder company received an p80,000, 12%, 120-day note from a…
Q: MCM Company issued a note receivable to a customer on September 1, 2020. The face value of the note…
A: Note receivable is considered as a negotiable instrument. It represents the claim amount due on the…
Q: On July 31, 2020, Clear Company discounted at the bank a customer's 600,000 interest-bearing note,…
A: Solution: Maturity value of note = Principal + Interest = 600,000 + (600,000*10%*6/12) = 600,000 +…
Q: On September 1, 2022, Darren Co. borrowed P150,000 from BPI by issuing 8% note due August 31, 2023,…
A: Note: Interest amount should be recognized on the amount borrowed. Accounts receivables pledged as…
Q: Sheffield Company had the following select transactions. Apr. 1, 2020 Accepted Goodwin Company’s…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: On October 1, 2020, Chung, Inc. assigns $1,000,000 of its accounts receivable to Seneca National…
A: Date Account Titles and Explanation Debit Credit October 1, 2020 Cash $730,000 Interest…
Q: On March 1, 2021, X Co. assigns $60,000 of its accounts receivable as a collateral for a loan from…
A: Interest = 47000* 1% = 470 Principal repayment = 10,000
Q: DE LA CRUZ Company received a 10%,180 day note from its customer on April 1, 2021. The note has a…
A: Solution : Given Face value =P500,000 interest rate =10% discount rate = 12 % date…
Q: Ireland Corporation obtained a $62,000 note receivable from a customer on June 30, 2021. The note,…
A: Interest on note = face Value of note x rate of interest x no. Of year = 62000 x 5% = $3,100
Q: On January 1, 2018, a business borrowed $18,000 on a five-year, 5% note payable. At December 31,…
A: Interest accrued on December 31, 2018 = Amount borrowed x rate of interest x period = $18,000 x 5% x…
Q: Al Havier Manufacturing received a Php 350,000 promissory note at 11% simple interest for 96 days…
A: Asper the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…
Q: heridan, Inc. issued a $125,000, 4-year, 9% note at face value to Flint Hills Bank on January 1,…
A: Journal Entry: Journal entry has two effects for every transaction. The journal entry is passed by…
Q: On October 1, 2021, Home Company issued to Security Bank a P6,000,000, 8-month, noninterest-bearing…
A: Bonds- The note/bond issuer offers collateral as security in this type of transaction. Such…
Q: On July 31, 2020, Clear Company discounted at the bank a customer's P600,000 interest-bearing note,…
A: The bill discount means getting money from bank against note receivable.
Q: On May 15, Franklin Co. borrowed cash from Dakota Bank by issuing a 90-day note with a face amount…
A: (a) The issued note cannot be discounted. It is issued at face value. Therefore, the proceeds of the…
Q: Yolo Corporation experienced financial difficulty in 2020. It decided to go into note receivable…
A: Journal Entries- Journal entries are the visual representation of business transactions. A general…
Q: Arvan Patel is a customer of Bank’s Hardware Store. For Mr. Patel’s latest purchase on January 1,…
A: Total interest on Note = face value of note x rate of interest x no. of years = $459,505 x 14% x 2…
Q: On December 1, 2020, Papa Po Company assigned specific accounts receivable totaling P200,000 as…
A: Carrying amount is defined as the asset original cost minus the accumulated depreciation, and at…
Q: On June 30, 2020, Dive Company discounted at the bank a customer's P6,000,000, 6-month, 10% note…
A: Solution 1: Maturity value of note = P6,000,000 + P6,000,000*10%*6/12 = P6,300,000 Net proceeds from…
Q: On June 30, 2020, GHI Company discounted at the bank a customer P6,000,000, 6-month, 10% note…
A: A note receivable is an instrument that promises the holder of the note a certain amount of sum…
Q: On September 1, 2015, Excellent Company received an $80,000, 12%, 120-day note from a credit…
A: Cash received from bank = Maturity value - Discount charged by the bank
Q: Lonergan Company occasionally uses its accounts receivable to obtain immediate cash. At the end of…
A: Prepare the Journal Entries on July 1 Detailed Journal Entries are given below:
Q: On October 31, 2021, COVID borrowed $400,000 at 11% interest and pledged $500,000 in accounts…
A: The loan is the amount a business organization borrows from any financial institution or any third…
Q: t Chocolate Company had a 12% note receivable dated June 30, 2020 in the original amount of…
A: The interest expenses are to be shown on the in balance sheet each year.
Q: On Nov 1 2021, Calixo Co. accepted a 90 day, 8% $2,000,000 note from Harmony Trading. Calixo Co.…
A: Maturity value of the note = Face value + interest = $2,000,000+2,000,000 *8%*90/360 =…
Q: What is the amount shown as Cash on Mickey Mouse’s December 31, 2019 Statement of Financial…
A: The balance as per the bank statement and as per the books is reconciled and adjusted to deduce the…
Q: On December 15, FDN Trading signed a P120,000, 4 percent, 120-day note payable with the bank. The…
A: Financial markets are venues where individuals and businesses may purchase and sell assets such as…
Q: On July 20, 2021, Benildo Corp. discounts a 120 days, 15% P250,000 note of a customer dated July 10,…
A: Notes are given interest rate and they are paid on maturity with interest also but they can be…
Q: . What is the loss on note receivable discounting?
A: 1. Net Proceeds from discounting =Maturity Value-Discount on note Maturity Value…
Q: Gravel Corporation borrowed $250,000 from a bank on January 1, 2019, by signing a10%, six-month…
A: Borrowings will increase the liability of Gravel Corporation.
Q: n December 1, 2020, P Company assigned specific accounts receivable totaling P200,000 as collateral…
A: In the given situation, P Company takes a note payable of P150,000 by assigning collateral of…
Q: Coldwell, Inc. issued a $100,000, 4-year, 10% note at face value to Flint Hills Bank on January 1,…
A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing…
Q: On July 31, 2020, Clear Company discounted at the bank a customer's P600,000 interest-bearing note,…
A: Net Proceeds from discounted note = Maturity Value - Discount on note
Q: On June 43, Trade Bank loaned a customer $30,000 on a 60-day, 10% note, temiting the face value less…
A: WORKING : PARTICULARS AMOUNT ($) FACE VALUE OF NOTES RECEIVABLE $30,000 INTEREST RATE 10%…
Q: Marydale Products permits its customers to defer payment by giving personal notes instead of cash.…
A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…
Q: On June 04, FDN Company sold merchandise to ABC Company and accepted a 90-day, 12% P90,000 note.…
A: calculation of cash received upon discounting are as follows
Q: Coldwell, Inc. issued a $100,000, 4-year, 10% note at face value to Flint Hills Bank on January 1,…
A:
Q: Max Corp. sold goods for $36,000 on July 17, 2020, and accepted a 12%, 90-day note. On August 1, the…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: On November 15, FDN Trading signed a P360,000, 12 percent, 180-day note payable with the bank. The…
A: Solution: Discount amount = P360,000 * 12%*180/360 = P21,600
Q: on september 1 excellent company received an p80,000, 12%, 120-day note from a credit customer…
A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…
Q: Ireland Corporation obtained a $62,000 note receivable from a customer on June 30, 2021. The note,…
A: Maturity value = principal + interest accrued
Q: On December 1, 2020, RB Company issued accounts receivable of Php6,000,000 to a bank in exchange for…
A: Account receivables are client balances that have not been paid for services rendered or items…
On September 1, 2020, Thunder Company received an P80,000, 12%, 120-day note from a credit customer wishing to extend its repayment period. On October 2, 2020, thirty days after the note was received, Thunder discounted the note at the bank at 14%. How much cash did Thunder Company receive from the bank? *
Step by step
Solved in 2 steps
- On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.Rain T-Shirts issued a $440,600 note on January 1, 2018 to a customer, Larry Potts, in exchange for merchandise. The merchandise had a cost to Rain T-Shirts of $220,300. The terms of the note are 24-month maturity date on December 31, 2019 at a 4.5% annual interest rate. Larry Potts does not pay on his account and dishonors the note. Record journal entries for Rain T-Shirts for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturityA 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
- Element Surfboards issued a $210,800 note on January 1, 2018 to a customer, Leona Marland, in exchange for merchandise. Terms of the note are 9-month maturity date on October 1, 2018 at a 10.2% annual interest rate. Leona Marland does not pay on her account and dishonors the note. On December 2, 2018, Element Surfboards decides to sell the dishonored note to a collection agency for 30% of its value. Record the journal entries for Element Surfboards for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on October 1, 2018 C. Receivable sale on December 2, 2018Mystic Magic issued a $120,250 note on January 1, 2018 to a customer, Amy Arnold, in exchange for merchandise. Terms of the note are 9-month maturity date on October 1, 2018 at a 9.6% annual interest rate. Amy Arnold does not pay on her account and dishonors the note. On November 10, 2018, Mystic Magic decides to sell the dishonored note to a collection agency for 25% of its value. Record the journal entries for Mystic Magic for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on October 1, 2018 C. Receivable sale on November 10, 2018On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
- A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
- On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.Comprehensive Receivables Problem Blackmon Corporations December 31, 2018, balance sheet disclosed the following information relating to its receivables: The company has a recourse liability of 700 related to a note receivable sold to a bank. During 2019, credit sales (terms, n/EOM) totaled 2,200,000, and collections on accounts receivable (unassigned) amounted to 1,900,000. Uncollectible accounts totaling 18,000 from several customers were written off, and a 1,350 accounts receivable previously written off was collected. Additionally, the following transactions relating to Blackmons receivables occurred during the year: On December 31, 2019, an aging of the accounts receivable balance indicated the following: Required: 1. Prepare the journal entries to record the preceding receivable transactions during 2019 and the necessary adjusting entry on December 31, 2019. Assume a 360-day year for interest calculations and round calculations to the nearest dollar. 2. Prepare the receivables portion of Blackmons December 31, 2019, balance sheet. 3. Next Level Compute Blackmons accounts receivable turnover in days, assuming a 360-day business year. What is your evaluation of its collection policies? 4. If Blackmon uses IFRS, what might be the heading of the section for the receivables reported in Requirement 2?Chemical 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?