On January 1, MM Co. borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual payments of $85,155 each.   1. Prepare the journal entry to record issuance of the note. 2. For the first $85,155 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note?

Q: On February 1, Electronic Warehouse Co. issued a 45-day note with a face amount of $80,000 to Yamura…

A: Notes are issued by the organisation for receivables and payables that are to be received or paid in…

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: Roth Company received from a customer a one-year, P500,000 note bearing an annual interest of 8%.…

A: Maturity value of note = Face value of note + interest = P500000 + 500000*8%*12/12 = P540000

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: Jacobs Company borrowed $10,000 on a one-year, 8 percent note payable from the local bank onApril 1.…

A: Notes payable:   Notes Payable is a written promise to pay a certain amount on a future date, with…

Q: rate was 11%. The first payment for interest and principal was made on September 1, Year 2. At…

A: The obligations require the company to pay interest within one year or operating cycle. Accrued…

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: On January 26, Bella Co. borrowed cash from Conrad Bank by issuing a 120-day note with a face amount…

A: A promissory note can be described as a legal document that documents a loan between the lender and…

Q: On January 1, 20x1, SAUCY BOLD Co. acquired a machine by issuing a 3-year, 3%, P4,800,000 note…

A: All amount are (P).

Q: On January 1, 2021, Cullumber Corp. borrows $9,000 by signing a 3-year, 3% note payable. The note is…

A: Period Cash payment Interest expense at 3% Reduction of principal Principal balance Jan 1, 2021…

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

A:

Q: During the year ended December 31, SC engaged in the following transactions involving notes payable.…

A: Journal entries is recording the of the transaction in the accounting journal in a chronological…

Q: On January 1, Year 1, Bryson Company obtained a $12,000, four-year, 9% installment note from…

A: Amortization is the payment of liability with a fixed settlement schedule in steady installments…

Q: Martinez Co. borrowed $69,569 on March 1 of the current year by signing a 60-day, 7%,…

A: From March 1 to April 30 = 60 days Interest is paid on the funds used by the business to generate…

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: Martinez Co. borrowed $74,240 on March 1 of the current year by signing a 60-day, 12%,…

A: Given, Face value of the note = $74,240 Interest rate = 12% Period = 60 days

Q: Keesha Co. borrows $100,000 cash on November 1 of the current year by signing a 150-day, 10%,…

A: The 150 days from November  1 will expire on March 31. Thetefore, Note will expire on March 31 next…

Q: Martinez Co. borrowed $69,589 on March 1 of the current year by signing a 60-day, 6%,…

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

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

A: CL stands for current liabilities which refers to the liabilities or obligations that are paid…

Q: Keesha Co. borrows $235,000 cash on November 1 of the current year by signing a 90-day, 11%.…

A: Mature date = 30 Jan

Q: On October 1, Eder Fabrication borrowed $60 million and issued a nine-month promissory note.…

A: LiabilitiesLiabilities are referred to as the obligations of the business towards the creditors for…

Q: On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount…

A: a. In this case, the note is not discounted. Hence, the proceeds amount of the note is equal to the…

Q: Flipco signed a 10-year note payable on January 1, 2018, of $800,000. The note requires annual…

A: Calculate the interest expense:

Q: On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount…

A: a. Note issued is at face value of $150,000. The issued note is not discounted. Hence, the proceeds…

Q: On the first day of the fiscal year, Shiller Company borrowed $22,000 by giving a five-year, 12%…

A: Notes payable: Notes payable can be defined as an instrument where a borrower promises to repay the…

Q: On December 1, Martin Company signed a $5,000 3-month 6% note payable, with the principle plus…

A: Interest accrued at December 31 on the note = Face value of the note x rate of interest x no. of…

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: On the first day of the fiscal year, Shiller Company borrowed $33,000 by giving a seven-year, 8%…

A: Journal entry

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 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: 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 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: 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: On January 1, 20x1, Drive Co, paid cash of P200,000 and issued a noninterest-bearing note P2,000,000…

A: Working note: Computation of initial recognition value of note payable:

Q: On January 1, 2017, Eagle borrows $100,000 cash by signing a four-year, 7% installment note. The…

A: Notes payable: It can be defined as a liability account that is used by the borrower to record the…

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, 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 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 June 1, 2008, Dara Corporation loaned Irvin P20,000,000 on a 12% note, payable in five annual…

A: Interest Receivables: When it comes to notes receivable, the interest rate is usually fixed, and the…

Q: Travel borrowed $33,000 on September ​1, 2018​, by signing a​ one-year note payable to State One…

A: Given that, loan amount = $33000 date of borrowal = 1 Sep 2018 Interest payment for 3 months = $355

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: the monthly payment is $5,800, what is the note's carrying value after the first month's payment is…

A: The original cost of an asset, as recorded in the books or balance sheet of a corporation, less the…

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 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: Martinez Co. borrowed $55,707 on March 1 of the current year by signing a 60-day, 12%,…

A: Interest expense is calculated by simple interest formula Interest = amount borrowed * interest rate…