On January 1, a company borrowed cash by issuing a $300,000, 5%, installment note to be paid in three equal payments at the end of each year beginning December 31. What would be the amount of each installment? Prepare the journal entry for the second installment payment.

Q: On 1 November, Year 1, Noble Co. borrowed P80,000 from South Bank and signed a 12%, six-month note…

A: Solution: Interest on note at maturity = P * R* T = P80,000 * 12%*6/12 = P4,800

Q: The December Trial Balance of Jane Corporation includes among others, the following: Long term…

A: Current liabilities: Current liabilities are short-term financial obligations of a company that are…

Q: Entries for Installment Note Transactions On the first day of the fiscal year, Shiller Company…

A:

Q: Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual…

A: Journal:Journal is the method of recording monetary business transactions in chronological order. It…

Q: On January 1, 2021, Corvallis Carnivals borrows $17,000 to purchase a delivery truck by agreeing to…

A:

Q: On January 1, Gemstone Company obtained a $165,000, 7%, 10-year installment note from Guarantee…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Coltrane Company has a $5,000 note payable that is paid in $1,000 installments over five years. How…

A:

Q: Journalizing Installment Notes On the first day of the fiscal year, a company issues $52,000, 11%,…

A:

Q: On January 1, Year 1, Beatie Company borrowed $400,000 cash from Central Bank by issuing a…

A: Amortization schedule of interest and principal payment for 5 periods is as under:

Q: The following journal entry was made by your predecessor to record the annual payment on a 5%,…

A: Note payable refers to a composed promissory note. Under this understanding, a borrower gets a…

Q: On the first day of the fiscal year, a company issues $32,000, 11%, five-year installment notes that…

A: The journal is the book in which the company will record the transactions in chronological manner.…

Q: On the first day of the fiscal year, a company issues $26,000, 12%, three-year installment notes…

A: Issue price of note is given at $26,000 and annual payment is $10,825 ($3,120 interest and $7,705…

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

A: While making annual payment to bank, the annual payment consists of some portion of principal…

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 January 1, Yeargan Company obtained a $125,000, seven-year 5% installment note from Farmers Bank.…

A: Note​ payable: Note​ payable is an instrument through which borrower obtains money from a person…

Q: ABC Company received a four-month note receivable in the amount of P74,000,000 on September 1. The…

A: Introduction: As per accrual concept any income or expenses shall be recognized only when they are…

Q: On January 1, 2021, Nantucket Ferry borrowed $14,000,000 cash from BankOne and issued a four-year,…

A: Borrowings refers to a financial transaction wherein a borrower (any person or company) approaches a…

Q: Justin Company signed a $90,000, three-month, 9% note payable, on December 1. If the accounting…

A: Interest accrued on December 31= Face value of bonds x rate of interest x no. of month/12 = $90000 x…

Q: Entries for installment note transactionsOn January 1, Year 1, Luzak Company issued a $120,000,…

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

Q: On the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a seven-year, 7%…

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 November 1, Bahama Cruise Lines borrows $4 million and issues a six-month, 6% note payable.…

A: Interest expense = Notes payable x rate of interest x time = $4,000,000 x 6% x 2/12 = $40,000

Q: On October 1, Eder Fabrication borrowed $84 million and issued a nine-month, 15% promissory note.…

A: Prepare the journal entry for the issuance of the note:

Q: Entries for Installment Note Transactions On the first day of the fiscal year, Shiller Company…

A: A installment note is a liability which represents amount owed by a company to its lender like bank…

Q: On January 1, a company borrowed cash by issuing a $390,000, 4%, installment note to be paid in…

A: Compute amount of each installment as shown below:

Q: Campus Flights takes out a bank loan in the amount of $210,000 on March 1. The terms of the loan…

A: Laon amortization schedule means where repayment during the life of loan is written with interest.

Q: Entries for Installment Note Transactions On the first day of the fiscal year, Shiller Company…

A: Notes payable is a form of liability for the business, on which interest needs to be paid out on…

Q: Jacobs Company borrowed $10,000 on a one-year, 8 percent note payable from the local bank on April…

A: The loan from bank has been taken against note payable in one year with interest payments paid…

Q: Entries for installment note transactionsOn January 1, Year 1, Bryson Company obtained a $147,750,…

A: Note payable is a liability for the firm which can be used to purchase an asset or to raise fund for…

Q: On August 1, a $60,000, 7%, 3-year installment note payable is issued by a company. The note…

A: Principal =$60,000 Interest =$60,000×7%      =4200 Principal  + interest paid in 31 July =…

Q: On the first day of the fiscal year, a company, issues $65,000, 6%, five year installment notes that…

A: Notes payable is liability.

Q: On January 1, 2018, Nantucket Ferry borrowed $14,000,000 cash from BankOne and issued a…

A: Interest on Note = Principal amount x rate of interest x time = $14,000,000 x 6% x 1 years =…

Q: On January 1, Year 1, Bryson Company obtained a $22,000, four-year, 12% installment note from…

A: Workings: Calculation of Interest: Year 1: 22000 x 12 % = 2640 Decrease in Notes payable = Notes…

Q: On the first day of the fiscal year, Shiller Company borrowed $26,000 by giving a three-year, 12%…

A: Notes payable is a liability account to repay a particular amount in a given period of time, where a…

Q: On January 1, Year 1, Luzak Company issued a $71,000, 4-year, 11% installment note to McGee Bank.…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On January 1, MM Co. borrows $340,000 cash from a bank and in return signs an 8% installment note…

A: An installment note is an obligation or liability that requires the borrower to repay the principal…

Q: On January 1, 2021, Eagle Company borrows $21,000 cash by signing a four-year, 5% installment note.…

A: Amortization is the practise of repaying debt over time via regular payments. The fixed payments…

Q: Andrews Inc. issues a $497,000, 10% 3-year mortgage note on January 1. The note will be paid in…

A: Interest expense = Beginning carrying value of principal*Interest rate

Q: On July 1, 2020, Thomas Company, which follows calendar year accounting,  issued $240.000 note to be…

A: Long -term debt-  Long term debt refers to the liability which is repaid after 12months or more.…

Q: FDN Company received a four-month note receivable in the amount of P68,000,000 on September 1. The…

A: Accrued interest income will be calculated in proportion of time for an amount at a specified rate.…

Q: On July 1, Shady Creek Resort borrowed $250,000 cash by signing a 10-year, 8% installment note…

A: Installment note is a type of loan that allows individuals to borrow a large amount of money that…

Q: On January 1, 2018, Company B borrowed 50,000 signing a 3-year installment note payable with yearly…

A: Note Payable - payment schedule:   Beginning Balance Interest Installment amount Principal amount…

Q: On the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a sevenyear,7%…

A: a) Prepare the journal entry.

Q: On April 12 Hong co. agrees to accept a 60 day, 6% 6,900 note from indigo co to extend the due date…

A: Introduction: Journals: Recording of a business transaction in a chronological order. First step in…

Q: On January 1, 2021, Nantucket Ferry borrowed $14,600,000 cash from BankOne and issued a four-year,…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On January 1, 2019, a company borrows $1,000 cash by signing a four-year, 5% installment note. The…

A: Given: Borrowed amount = $ 1,000 Rate of note = 5 % Amount for equal payment = $ 282

Q: On july 1, Shady creek resort borrowed 290,000 cash by signing a 10 year, 10% installment note…

A: Interest expense  is the amount of interest accrued during  period

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,

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.