Muscat Company borrowed OMR100,000 from the bank signing a 12 %, 3-month note on January 1. the adjusting entry that thecompany should make for interest on March 31, would beSelect one:O a. None of the answers are correctO b. Debit Cash, OMR 3,000; Credit Interest Payable, OMR 3,000.O c. Debit Note Payable, OMR 3,000; Credit Cash, OMR 3,000.d. Debit Interest Expense, OMR 3,000; Credit Interest Payable, OMR 3,000.O e. Debit Interest Expense, OMR 12,000; Credit Interest Payable, OMR 12,000.

Interest accrued on March 31= Face value of note x rate of interest x no. of months / 12 =…

Muscat Company borrowed OMR100,000 from the bank signing a 12 %, 3-month note on January 1. the adjusting entry that the company should make for interest on March 31, would be Select one: O a. None of the answers are correct b. Debit Cash, OMR 3,000; Credit Interest Payable, OMR 3,000. c. Debit Note Payable, OMR 3,000; Credit Cash, OMR 3,000. O d. Debit Interest Expense, OMR 3,000; Credit Interest Payable, OMR 3,000. O e. Debit Interest Expense, OMR 12,000; Credit Interest Payable, OMR 12,000.

Muscat Company borrowed OMR100,000 from the bank signing a 12 %, 3-month note on January 1. the adjusting entry that the company should make for interest on March 31, would be Select one: O a. None of the answers are correct b. Debit Cash, OMR 3,000; Credit Interest Payable, OMR 3,000. c. Debit Note Payable, OMR 3,000; Credit Cash, OMR 3,000. O d. Debit Interest Expense, OMR 3,000; Credit Interest Payable, OMR 3,000. O e. Debit Interest Expense, OMR 12,000; Credit Interest Payable, OMR 12,000.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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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.
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A 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
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.
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