Help fix what I did wrong. E9-4 (Algo) Recording a Note Payable through Its Time to Maturity with Discussion of ManagementStrategy LO 9-1, 9-3Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable.FederalWay, Inc., is one of America's most prestigious retailers. Each Christmas season, FederalWay builds up its inventory to meet theneeds of Christmas shoppers. A large portion of these Christmas sales are on credit. As a result, FederalWay often collects cash fromthe sales several months after Christmas. Assume that on November 1 of this year, FederalWay borrowed $6.0 million cash from ThirdFifth Bank to meet short-term obligations. FederalWay signed an interest-bearing note and promised to repay the $6.0 million in sixmonths. The annual interest rate was 8%. All interest will accrue and be paid when the note is due in six months. FederalWay'saccounting period ends December 31.Required:1. Prepare the journal entry to record the note on November 1.2. Prepare any adjusting entry required at the end the annual accounting period on December 31.3. Prepare the journal entry to record payment of the note and interest on the maturity date, April 30.(For all requirements, If no entry is required for a transaction/event, select "No journal entry required" in the first account field.Enter your answers in whole dollars not in millions (i.e., 1,000,000 not 1.0).)View transaction listJournal entry worksheet<2Record the payment of the note and interest on the maturity date.DateApril 30Note: Enter debits before credits.3Interest expenseNote payableCashRecord entryInterest payableGeneral JournalClear entryDebit160,0006,000,000Credit160,0006,240,000View general journal

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Journal entry worksheet < 1 2 Record the payment of the note and interest on the maturity date. Date April 30 Note: Enter debits before credits. 3 Interest expense Note payable Cash Record entry Interest payable General Journal Clear entry Debit 160,000 6,000,000 Credit 160,000 6,240,000 View general journal

Journal entry worksheet < 1 2 Record the payment of the note and interest on the maturity date. Date April 30 Note: Enter debits before credits. 3 Interest expense Note payable Cash Record entry Interest payable General Journal Clear entry Debit 160,000 6,000,000 Credit 160,000 6,240,000 View general journal

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mitt Corporation builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt Corporation sales are on credit. As a result, Mitt Corporation often collects cash from its sales several months after Christmas. Assume on November 1, 2021, Mitt Corporation borrowed $7.5 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 6.50 percent payable at maturity. The accounting period ends December 31. Required: 1. Indicate the accounts, amounts, and effects of the (a) issuance of the note on November t; (b) impact of the adjusting entry on December 31, 2021; and (c) the payment of the note and interest on April 30, 2022, on the accounting equation (Do not round intermediate calculations. Enter your answers in whole dollars. Enter any decreases to assets,…
Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mitt Corporation builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt Corporation sales are on credit. As a result, Mitt Corporation often collects cash from its sales several months after Christmas. Assume on November 1, 2021, Mitt Corporation borrowed $7.6 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 7.00 percent payable at maturity. The accounting period ends December 31. Required: 1, 2 & 3. Prepare the required journal entries to record the note on November 1, 2021, the adjusting entry required on December 31 2021 (if any), and interest on the maturity date, April 30, 2022, assuming that interest has not been recorded since December 31, 2021. do not give solution in image format
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E8-3 Recording, Reporting, and Evaluating a Bad Debt Estimate Using the Percentage of Credit Sales Method During the year ended December 31, 2021, Kelly's Camera Shop had sales revenue of $170,000, of which $85,000 was on credit. At the start of 2021, Accounts Receivable showed a $10,000 debit balance and the Allowance for Doubtful Accounts showed a $600 credit balance. Collections of accounts receivable during 2021 amounted to $68,000. Data during 2021 follow: a.On December 10, a customer balance of $1,500 from a prior year was determined to be uncol- , so it was written off. lectible b. December 31, a decision was made to continue the accounting policy of basing estimated bad debt losses on 2 percent of credit sales for the year. b. On Required: 1. Give the required journal entries for the two events in December. 2.Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the balance sheet and income statement for 2021. 13 On the basis of the data…
Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mitt builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt's sales are on credit. As a result, Mitt often collects cash from its sales several months after Christmas. Assume on November 1, 2018, Mitt borrowed $6.5 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 6.00 percent payable at maturity. The accounting period ends December 31. Required: 1, 2 & 3. Prepare the required journal entries to record the note on November 1, 2018, interest on the maturity date, April 30, 2019, assuming that interest has not been recorded since December 31, 2018. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 1. Record the borrowing of $6,500,000.…
Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mitt builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt's sales are on credit. As a result, Mitt often collects cash from its sales several months after Christmas. Assume on November 1, 2018, Mitt borrowed $6.5 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 6.00 percent payable at maturity. The accounting period ends December 31. how would i make the three journal entires for the statement above
Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mitt builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt's sales are on credit. As a result, Mitt often collects cash from its sales several months after Christmas. Assume on November 1, 2018, Mitt borrowed $6.5 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 6.00 percent payable at maturity. The accounting period ends December 31. Required: 1, 2 & 3. Prepare the required journal entries to record the note on November 1, 2018, interest on the maturity date, April 30, 2019, assuming that interest has not been recorded since December 31, 2018. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) , 2 & 3.…
Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mattel builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mattel's sales are on credit. As a result, Mattel often collects cash from its sales several months after Christmas. Assume on November 1, 2018, Mattel borrowed $6 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 8.0 percent payable at maturity. The accounting period ends December 31. Required: 1, 2 & 3. Prepare the required journal entries to record the note on November 1, 2018, interest on the maturity date, April 30, 2019, assuming that interest has not been recorded since December 31, 2018. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
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