how to do these question? QUESTION 5On July 1 2019, Barokah Company issued RM45,000, notes payable to fund its business with4.5% interest within 4 years. Accounting period ends every December 31.REQUIRED:a) Calculate the amount of interest applicable to the notes payable.b) Determine the maturity date of the notes payable.c) Prepare journal entries to record :ii)iii)The issuance of the notes payable.The accrual of interest on December 31 2019.The redemption of the notes payable on maturity date.44 SESSION 2020/2021QUESTION 6Merkell Company issued RM800,000 of 9%, 10-year bonds on January 1, 2019, at face value.Interest is payable annually on January 1.REQUIRED:Prepare the journal entries to record the following events:a) The issuance of the bonds.b) The accrual of interest on December 31, 2019.c) The payment of interest on January 1, 2020.d) The redemption of bonds at maturity date, assuming the interest for the last period hasbeen paid and recorded.QUESTION 7On January 1, 2019, Fast Track Sdn Bhd issued 8% bonds worth RM300,000. This bond willmature on January 1, 2022. This bond will be paid interest twice a year, on July 1 and January1. The company's financial year ends December 31 each year.REQUIRED:a) Prepare the journal entry to record the issuance of the bonds on January 1, 2019.b) Prepare the journal entry to record the interest on July 1, 2019.c) Prepare the journal entry on December 31, 2019.d) Prepare Statement of Financial Position as at December 31, 2019.QUESTION 8On January 1 2018, Trademark Bhd issued 1,000 units, 10-year debentures, RM1,000 per unit,6%. Interest payment is made once a year, on January 1. (Assume 360 days a year).REQUIRED:a) Calculate the annual interest payable to holders of debentures.b) Determine the maturity date of debentures.c) Prepare the journal entries to record :i)ii)iii)iv)The issuance of the debentures.The adjustment for the year ended June 30 2019.The payment of interest on January 1 2020.The redemption of debentures at maturity date.

As the questions asked have more than 1 question, the first question is answered. If you want the…

On July 1 2019, Barokah Company issued RM45,000, notes payable to fund its business with 4.5% interest within 4 years. Accounting period ends every December 31. REQUIRED: a) Calculate the amount of interest applicable to the notes payable. b) Determine the maturity date of the notes payable. c) Prepare journal entries to record : ii) iii) The issuance of the notes payable. The accrual of interest on December 31 2019. The redemption of the notes payable on maturity date.

On July 1 2019, Barokah Company issued RM45,000, notes payable to fund its business with 4.5% interest within 4 years. Accounting period ends every December 31. REQUIRED: a) Calculate the amount of interest applicable to the notes payable. b) Determine the maturity date of the notes payable. c) Prepare journal entries to record : ii) iii) The issuance of the notes payable. The accrual of interest on December 31 2019. The redemption of the notes payable on maturity date.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.6AP

See similar textbooks

Similar questions

Note Payable and Accrued Interest Ellsworth Enterprises borrowed $425,000 on an 8%, interest-bearing note on September 30, 2020. Ellsworth ends its fiscal year on December 31. The note was paid with interest on March 31, 2021. Required: 1. Prepare the entry for this note on September 30, 2020. 2. Prepare the adjusting entry for this note on December 31, 2020. 3. Indicate how the note and the accrued interest would appear on the balance sheet at December 31, 2020. 4. Prepare the entry to record the repayment of the note on March 31, 2021.
Journalizing installment notes On the first day of the fiscal year, a company issues 45,000, 8%, six-year installment notes that have annual payments of 9,734. The first note payment consists of 3,600 of interest and 6,134 of principal repayment. A. Journalize the entry to record the issuance of the installment notes. B. Journalize the first annual note payment
Notes Receivable On September 1, 2016, Dougherty Corp. accepted a six-month, 7%, $45,000 interest-bearing note from Rozelle Company in payment of an account receivable. Doughertys year-end is December 31. Rozelle paid the note and interest on the due date. Required Who is the maker and who is the payee of the note? What is the maturity date of the note? Prepare all necessary journal entries that Dougherty needs to make in connection with this note.
Non-Interest-Bearing Notes Payable On November 16, 2019, Clear Glass Company borrowed 20,000 from First American Bank by issuing a 90-day, non-interest-bearing note. The bank discounted this note at 12% and remitted the difference to Clear Glass. Required: 1. Prepare the journal entries of Clear Glass to record the preceding information, the related calendar year-end adjusting entry, and payment of the note at maturity. 2. Show how the preceding items Would be reported on the December 31, 2019, balance sheet. 3. Next Level What is Clear Glass Companys effective interest rate?
Notes Payable Rogers Machinery Company borrowed $330,000 on February 1, with a 6-month, 10%, interest-bearing note. Required: 1. Record the borrowing transaction. 2. Record the repayment transaction.
Notes Payable and Effective Interest On November 1,2019, Edwin Inc. borrowed cash and signed a 60,000, 1-year note payable. Required: Compute the following items assuming (a) an interest-bearing note at 12%, (b) a non-interest-bearing note discounted at 12%: cash received effective interest rate interest expense for 2019 Prepare the journal entries for Edwin under each case for 2019 and 2020. Next Level Why is the effective rate higher for the non-interest-bearing note?
Everglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of the loan include a repayment of principal in eight, equal installments, paid annually from the April 1 date. The annual interest rate on the loan is 5%, recognized on December 31. (Round answers to the nearest cent, if needed.) A. Compute the interest recognized as of December 31 in year 1. B. Compute the principal due in year 1.
Proceeds from notes payable On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount of 150,000. A. Determine the proceeds of the note, assuming the note carries an interest rate of 10%. B. Determine the proceeds of the note, assuming the note is discounted at 10%.
Cornerstone Exercise 9-26 Debt Issued at Par On January 1, 2019, Brock & Co. issued S600,000 of bonds payable at par. The bonds have a 9% stated rate, pay interest on March 31, June 30, September 30, and December 31, and mature on December 31, 2019, Required: Prepare the journal entries to record the interest payment on June 30, 2019. Use the following information for Cornerstone Exercises 9-27 and 9-28: On January 1, 2020, Drew Company issued S350,000, 5-year bonds for $320,000. The stated rate of interest was 7% and interest is paid annually on December 31.
Entries for installment note transactions On January 1, 20Y2, Hebron Company issued a 175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual payments of 43,830, beginning on December 31, 20Y2. Journalize the entries to record the following: