LARA Company secured a bank loan of $ 90,000, on 1/4/2020. In return, it signed a 10 month, 6%, note payable. LARA Co. closes its accounts annually, on December 31 of every year. The loan and total interest are to be paid to the bank at the end of the loan term. Required: the adjusting entry on December 31, 2020, will show a credit to interest payable for

Q: On April 15, 2021, Sampson Consulting provides services to a customer for $99,000. To pay for the…

A: Journal entries are primary reporting of the transactions occurring in the business, in the books of…

Q: On October 1, 2019, Muscat Company borrowed OMR 8,000 cash by signing a note payable due in one year…

A: Note payable is a promissory note which a company sign to borrow an amount of money. A fixed rate of…

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: As promise for future payment, Carlock Systems received a six-month, 12% note for $50,000 from a…

A: Interest revenue = Notes receivables x rate of interest x months/12

Q: On June 1, Davis Inc. issued an $85,500, 10%, 120-day note payable to Garcia Company Assume that the…

A: Calculate the total interest as follows: Interest = Bonds amount * interest rate Interest = $85,500…

Q: Sheridan Company borrows $37,800 on July 1 from the bank by signing a $37,800, 8%, one-year note…

A: Sheridan Company has borrowed on July 1. Interest for 6 months is due as on 31st December. Interest…

Q: The following selected transactions relate to liabilities of United Insulation Corporation. United’s…

A: Solution:- Preparation of appropriate journal entries through the maturity of each liability as…

Q: On April 1, 2021, Baker Construction, Inc. signed a note for a loan from its bank. The following are…

A: The journal entries are prepared by the company to record the monetary transactions of the company…

Q: On September 1, Kennedy Company loaned $112,000, at 9% annual interest, to a customer. Interest and…

A: The question is based on the concept of Financial Accounting.

Q: On September 1, 2021, Middleton Corp. lends cash and accepts a $5,000 note receivable that offers…

A: Interest = Principal x rate of interest x no. of months / 12 months

Q: On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $21 million cash…

A: Given information is: On August 1, 2021, Trico Technologies, an aeronautic electronics company,…

Q: On May 1, 2020, Christina Fashions borrowed $106,000 at a bank by signing a four-year, 6% loan. The…

A: Interest payable is a liability any individual or company owes for the obligation to be repaid. It…

Q: Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of…

A: Beginning Notes Payable Interest Expense Repaid Principal on Notes Payable Ending Notes Payable…

Q: On January 1 of this year, Diorite borrows $100,000 with a 5%, 9-month loan. Interest is due at…

A: Journal entries means the book of prime entry incuding debit and credit item. Adjusting entry means…

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: Martinez Co. borrowed $79,200 on March 1 of the current year by signing a 60-day, 9%,…

A: The interest expense  is calculated as  follows  $79200 × 9% × 60/360   = $1188

Q: On July 1, 2020, United Flag Company took out a 15-year loan for $144,000. Principal repayments of…

A: Given information, Loan amount =$144,000 Principal repayments=$9,600 Interest=8% per annum

Q: On January 1, 2018, King Inc. borrowed $190,000 and signed a 4-year, note payable with a 10%…

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

Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms…

A: Introduction: Journals: Each and every business transactions are to be recorded in Journals.…

Q: On January 1, 2019, Pigero Company took 3-year, P4,000,000 loan from a bank. The loan agreement…

A: Computation of the current liability to  the loan in Pigero's 2019 year end financial statement is…

Q: The owner of Jewel Company had a loan from Metrobank amounting to ₱500,000. The bank requires the…

A: Accrued interest on loan ( from November 1, 2020 to December 31, 2020 ) = ₱500,000 x 12% x 212 =…

Q: her Information The note payable to Southern Bank is due in 60 days. Arrangements have been made to…

A: Answer: Since the note payable to N bank is due in 60 days, it is considered as a current liability.…

Q: Blanton Plastics, a household plastic product manufacturer, borrowed $6 million cash on October 1,…

A: Since, you have specifically asked for 3b, so we will solve the same for you.

Q: On July 1, 2021, a company loans one of its employees $27,000 and accepts a eight-month, 8% note…

A:

Q: A bank lent P350,000 to a customer on December 1, 2019 that required the customer to pay an annual…

A: Loan receivable is referred to as the assets of the organization.

Q: Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: On September 1, 20X1, Chabon Corp. purchased machinery costing $20,000 by issuing a 12-month, 12%,…

A: Lets understand the basics. Management some time purchase asset using the loan. In that case if loan…

Q: On February 1, 2021, a company loans one of its employees $28,000 and accepts a eight-month, 7% note…

A: The note receivable is recorded as a current asset in the balance sheet of the company.  Given…

Q: On May 1, 2020, Christina Fashions borrowed $106,000 at a bank by signing a four-year, 6% loan. The…

A: Interest is the amount paid over and above the principal amount to the lender. Basically, it is the…

Q: 1. Chapter-9 Homework Question. Help

A: Required journal entry for the issuance of note payable:

Q: Dan Dayle started a business by issuing an $83,000 face value note to First State Bank on January 1,…

A: Interest is computed as per the following formula Interest=Principal*rate*term

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 following information relates to the Crane Company at the end of 2020. The accounting period is…

A: Adjusting entries are prepared at the end of the accounting period in order to ensure the accrual…

Q: Nova Company reported the following receivables on December 31, On June 1, 2018, Yola Company loaned…

A: The amount of interest that has been recognized as revenue but has not yet been paid by the borrower…

Q: On January 1, 2018, King Inc. borrowed $190,000 and signed a 5- year, note payable with a 10%…

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

Q: On January 1, 2019, Brooks, Inc. borrows $90,000 from a bank and signs a 5% installment note…

A: Amount Borrowed: $90,000 Interest rate : 5% per annum

Q: On January 1, 2021, Banco de Oro made a 1,000,000 8% loan with interest receivable at the end of…

A: Principal Repayment- A principal payment is an imbursement that goes toward the reimbursement of the…

Q: OJO Company obtained a loan from a Rural Bank for P420,000 on November 16, 2020. On the same date,…

A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…

Q: Assume, that on June 2, 2022, PVH Corp., borrowed $10,500,000 cash from Fifth Third Bank to meet…

A: Introduction: Many bonds or investments provide interest at maturity, which indicates that the whole…

Q: On April 15, 2021, Sampson Consulting provides services to a customer for $110,000. To pay for the…

A: Journal Entry:   Journal entry has two effects for every transaction. The journal entry is passed by…

Q: Assuming the customer’s borrowing rate is 5%, prepare all journal entries for 2019 and 2020 under…

A: At first, we will find out the present value of the note payable.

Q: On February 1, 2021, a company loans one of its employees $21,000 and accepts a nine-month, 8% note…

A: Interest = Principal x rate of interest x no. of months/12 months

Q: Jem Riane Delos Reyes Bank granted a loan of P3,000,000 to a borrower on January 1, 2021. The terms…

A: given, loan amount = $3000,000 which is not paid for first two years.

Q: On September 30, 2021, Coronado Corporation received a three-year, 12%, $1,750,000 bank loan. The…

A: GIVEN   On September 30, 2021, CORONADO Corporation received a three-year, 12%, $1,750,000 bank…

Q: On January 1, 2021, Corvallis Carnivals borrows $30,000 to purchase a delivery truck by agreeing to…

A: Given: To calculate the note payable and the first monthly payment as,

Q: Below are the details of a loan Levis' obtained from their bank on Novernber 1, 2021. Required:…

A: Any Interest payment included in the loan installment is debited to interest expense account and…

Q: During 2021, Wildhorse Co. borrowed cash from Sandhill Co. by issuing notes payable as follows: 1.…

A: Maintenance of books of account is very important for a business organisation. This process is known…