On December 1, 2016, Old Car Co. borrowed money at the bank by signing a 90-day non-interest-bearing note for $24,000 that was discounted at 8%. Which of the following entries is correct? December 31, 2016Interest Expense 160       Discount on Notes Payable     160 December 31, 2016Interest Expense 160       Interest Payable     160 March 1, 2017Note Payable 23,520       Cash     23,520 December 1, 2016Cash 24,000       Note Payable     24,000

Q: Blue Spruce Corp. lends Dobson industries $ 60000 on August 1, 2017, accepting a 9-month, 6%…

A: Interest receivable on December 31, 2017 = 60,000 x 6/100 x 5/12 = $1,500  Interest revenue from…

Q: Zorzi Corporation borrowed $60,000 on November 1, 2017 by signing a $61,350, 3-month, zero-interest…

A: Journal entry is the primary entry that records the financial transactions initially.

Q: Sylvestor Systems borrows $161,000 cash on May 15, 2017, by signing a 30-day, 5% note.   1. On what…

A: Promissory note is an instrument issued by the borrower to lender for the money payable after the…

Q: Zorzi Corporation borrowed $60,000 on November 1, 2017 by signing a $61,350, 3-month, zero-interest…

A: Discount on Notes Payable = Face Value of Note - Amount borrowed = $61,350 - $60,000 = $1,350

Q: Morton Company had the following select transactions.    Apr. 1, 2014 Accepted Remington Company's…

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

Q: On july 1, 2017 LA company sold equipment to NA company for 1,000,000. LA accepted a 10% note…

A: Discounting a note receivable refers to the selling of the notes receivable in the future for a…

Q: On October 1, Eli's Carpet Service borrows $300,000 from First National Bank on a 5-month, $120,000,…

A: Accrued Interest means the Interest which is already due but not paid with in the specific due…

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: On October 1, 2017 Chung. Inc. assigns $1,000,000 of its accounts receivable to Seneca National bank…

A:

Q: C.S. Lewis Company had the following transactions involving notes payable. July 1, 2012 Borrows…

A: Notes Payable: Notes Payable refers to a liability where a borrower records a written promise to…

Q: Samson Corporation issued a 4-year, $75,000, zero-interest-bearing note to Brown Company on January…

A:

Q: Weldon Corporation’s fiscal year ends December 31. The following is a list of transactions involving…

A: Provision to be created=920000*3%+3000-25000 =5600

Q: On September 1, 2018, Packaging Company. Borrowed OR 1,200,000 cash from Bank Muscat. The company…

A: The Notes payable or Accounts payable is a liability in which the borrower records a written promise…

Q: Sylvestor Systems borrows $96,000 cash on May 15 by signing a 60-day, 7%, $96,000 note.   1. On what…

A: SOLUTION- 1                                      CALCULATION OF DATE OF MATURE OF NOTE DATE OF…

Q: On June 30, 2018, Munoz Company’s total current assets were $503,500 and its total current…

A: Working capital = Current assets - Current liabilities   Current ratio = Current assets / Current…

Q: Sylvestor Systems borrows $146,000 cash on May 15 by signing a 90-day, 7%, $146,000 note. 1. On what…

A: Notes Payable - Notes Payable is the Promissory Notes Issued by the borrower. It carried fixed rate…

Q: Wellington Company had the following transactions involving notes payable. Nov. 1, 2020   Borrows…

A: Book are closed on Dec. 31 and note matures on Feb. 1. So, an adjusting entry for interest accrued…

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: On May 1, 2022, FDN Trading accepted a 120-day, 8% P60,000 note from ABC Co. 30 days after, FDN…

A: Let's understand some basics  Notes are usually discounted with recourse, when it is discounted with…

Q: On October 1, 2017 Chung. Inc. assigns $1,000,000 of its accounts receivable to Seneca National bank…

A: Assigning of account receivable to bank means right given to bank to collect amount  from account…

Q: City Graphics has the following notes payable transactions. July 5 Issued a $3,500 note to Roma…

A: Journal entry is recording of the transactions of the business in the books of accounts of the…

Q: Sylvestor Systems borrows $110,000 cash on May 15 by signing a 60-day, 12%, $110,000 note. 1. On…

A: Interest on Notes = Face value of Notes x rate of interest x time = $110,000 x 12% x 60/360 = $2,200

Q: Selected transactions of Shadrach Computer Corporation during November and December of 2016 are as…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Sylvestor Systems borrows $69,000 cash on May 15 by signing a 60-day, 8%, $69,000 note. 1. On what…

A: Formula: Interest expense = Notes amount x Time period x Interest rate

Q: On September 1, 2012, Lowe Co. issued a note payable to National Bank in the amount of $900,000,…

A: GIVEN: On 1 Sep 2012 Lowe co. issued note payable to national bank for $900000 Interest rate = 12%…

Q: On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a 30-day note with a face…

A: Proceeds of the note = Face value value of the note - discount amount

Q: The Field Detergent Company sold merchandise to the Abel Company on June 30, 2016. Payment was made…

A: Present value of note receivable is calculated by discounting the future value of note receivable at…

Q: Pina Colada Corp. has the following transactions related to notes receivable during the last 2…

A: Introduction: A journal entry is used in a company's accounting records to disclose a business…

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: 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: Non-Interest-Bearing Notes Payable On October 1, 2017, Valentino Company borrowed $18,800 from U.S.…

A: In non-interest bearing note, interest may be implied in the contract. Lender may provide the loan…

Q: Ayayai Supply Co. has the following transactions related to notes receivable during the last 2…

A: A journal entry is a record of a company's financial activities kept in its accounting books. The…

Q: Mission Corp. borrowed $25,000 cash on April 1, 2016, and signed a one-year 8%, interest-bearing…

A: Amount paid to bank = Principal + Interest expense Interest expense = Note Payable x rate x number…

Q: . Lewis Company had the following transactions involving notes payable. July 1, 2014 Borrows…

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

Q: Sylvestor Systems borrows $70,000 cash on May 15 by signing a 90-day, 5%, $70,000 note. 1. On what…

A: Notes payable are the written agreement in which maker of the note promises to pay a certain amount…

Q: On October 1, 2017, Chung, Inc. assigns $1,000,000 of its accounts receivable to Seneca National…

A: In the books of Chung, Inc.: Date Account Titles and Explanation Debit Credit October 1, 2017…