On June 1, Sheridan Company borrows $91,500 from First Bank on a 6-month, $91,500, 8% note. 1. Prepare the entry on June 1.
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A: When money is lent against notes, the notes receivable (asset) is debited and cash is credited.
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Q: b.Rodriguez is the borrower and debits Accounts Payable
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Q: On October 1, Black Company receives a 6% interest-bearing note from Reese Company to settle a…
A: Interest revenue = Accounts receivable * Rate of interest * Month / 12
Q: On March 1, 20x4, Banco Popular agrees to lend $ 100.00 to your company through a written contract…
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Q: On October 1, Black Company receives a 8% interest-bearing note from Reese Company to settle a…
A: Lets understand the basics. For calculating interest revenue needs to record, we need to use below…
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A: Interest accrued on December 31, 2011 = Face value of note x rate of interest x months /12 = $24,000…
Q: On December 1, Williams Company borrowed $50,000 cash from Second National Bank by signing a 90-day.…
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A: Calculate the interest amount as follows: Interest = Face value * Interest rate*Periods
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Q: On November 25 of the current year, a company borrows $8,000 cash by signing a 90-day, 5% note…
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Q: A business borrowed $59,037 on March 1 of the current year by signing a 30 day, 11% interest bearing…
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Q: On October 1, Eli's Carpet Service borrows $300,000 from First National Bank on a 5-month $120,000,…
A: In an organization's accounting system, a journal entry is a record of a business transaction.…
Q: On June 1, Vaughn Company borrows $144,000 from First Bank on a 6-month, $144,000, 8% note.
A: Interest is charged on accrual basis
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A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
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A: The journal entries are prepared to keep the record of day to day transactions of the business.
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A: From July 1 to December 31 = 6 months So interest is accrued for 6 months on December 31.
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A: Interest Revenue = Deposit amount * Rate * Period
Q: On January 2nd, Mobile Sales borrows $20,000 cash on a note payable from Ethical Lenders with terms…
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Q: A business issued a 120-day, 6% note for $10,000 to a creditor on account. The company uses a…
A: Hey, Since there are multiple questions posted, we will answer first question. If you want any…
Q: On September 1, 2021, Alled Moving Corp. borrows $90,000 cash from First National Bank. Alled signs…
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Q: In the month of January beginning Peter company borrowed $ 5000 from Lios by issuing 10 % Note ,…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: In the month of January beginning Peter company borrowed $ 5000 from Lios by issuing 10 % Note,…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: A 60-day, 5% note for $7,800, dated April 15, is received from a customer on account. The face value…
A: Definition: Receivables: Receivables refer to an amount to be received in future. General…
Q: On October 1, Black Company receives a 10% interest-bearing note from Reese Company to settle a…
A: The interest revenue is the interest earned for the period on the note receivable, etc.
Q: On September 1, 2021, Allied Moving Corp. borrows $90,000 cash from First National Bank. Allied…
A: Lets understand the basics. Journal entry is required to make to record an event or transaction that…
Q: 7. )River Ridge Music School borrowed $30,000 from the bank signing a 6%, 6-month note on November…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
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A: Given: Amount borrowed = $125,000 Period = 3 months Rate = 8%
Q: On October 1, $10,000 was borrowed on a 90 day, $10,000, 4% note. The journal entry on December 31…
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Q: The following selected transactions for notes receivable are for Accustart Limited. May 1…
A: Step 1 Journal is the part of the book keeping.
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A: Amount borrowed = $10,000 Interest rate = 9% Interest expense = 10,000 x 9% x 1/12 = 75
Q: A business issued a 45-day note for $80,000 to a creditor on account. The note was discounted at 5%.…
A:
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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.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.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
- Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at the end of the month for 12 months. The interest rate is 12% annually. If the monthly payments are $888.49, what is the journal entry to record the cash received on Jan. 1 and the first payment made on Jan. 31?
- On January 1 a company issues a $75,000 bond that pays interest semi-annually. The first interest payment of $1,875 is paid on July 1. What is the stated annual interest rate on the bond? A. 5.00% B. 2.50% C. 1.25% D. 10.00%Cost of Bank Loan On March 1, Minnerly Motors obtains a business loan from a local bank. The loan is a 25,000 interest-only loan with a nominal rate of 11%. Interest is calculated on a simple interest basis with a 365-day year. What is Minnerlys interest charge for the first month (assuming 31 days in the month)?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.
- A business issued a $5,000, 60-day, 12% note to the hank. The amount due at maturity is: A. $4,900 B. $5,000 C. $5,100 D. $5,600Payroll accounts and year-end entries The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: The following transactions relating to payroll, payroll deductions, and payroll taxes Occurred during December: Dec. 2. Issued Check No. 410 for 3,400 to Jay Bank to invest in a retirement savings account for employees. 2. Issued Check No. 411 to Jay Bank for 27,046, in payment of 9,273 of social security tax, 2,318 of Medicare tax, and 15,455 of employees federal income tax due. 13. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Dec. 13. Issued Check No. 420 in payment of the net amount of the biweekly payroll to fund the payroll bank account. 13. Journalized the entry to record payroll taxes on employees earnings of December13: social security tax, 4,632; Medicare tax, 1,158; state unemployment tax, 350; federal unemployment tax, 125. 16. Issued Check No. 424 to Jay Bank for 27,020, in payment of 9,264 of social security tax, 2,316 of Medicare tax, and 15,440 of employees federal income tax due. 19. Issued Check No. 429 to Sims-Walker Insurance Company for 31,500, in payment of the semiannual premium on the group medical insurance policy. 27. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: 27. Issued Check No. 541 in payment of the net amount of the biweekly payroll to fund the payroll bank account. 27. Journalized the entry to record payroll taxes on employees earnings of December27: social security tax, 4,668; Medicare tax, 1,167; state unemployment tax, 225; federal unemployment tax, 75. 27. Issued Check No. 543 for 20,884 to State Department of Revenue in payment of employees state income tax due on December 31. 31. Issued Check No. 545 to Jay Bank for 3,400 to invest in a retirement savings account for employees. 31. Paid 45,000 to the employee pension plan. The annual pension cost is 60,000. (Record both the payment and unfunded pension liability.) Instructions 1. Journalize the transactions. 2. Journalize the following adjusting entries on December 31: a. Salaries accrued: operations salaries, 8,560; officers salaries, 5,600; office salaries,1,400. The payroll taxes are immaterial and are not accrued. b. Vacation pay, 15,000.
