On March 1, 2018, Bodie Co. accepted a $7,900 face value note as evidence of a loan it made to T Company. The note had a 11 percent interest rate and a one-year term. What is the interest revenue recognized by Bodie in 2018
Q: On January 1,2018, Ronaldo Co. Received a ₱1,000,000 note receivable from Quirante Inc. Principal…
A: If the anticipated future cash flows cannot be recovered, then impairment loss needs to be…
Q: On February 1st, 2021, Seen This Before Inc. (STB) accepted a non-interest-bearing note from its…
A: GIVEN On February 1st, 2021, Seen This Before Inc. (STB) accepted a non-interest-bearing note from…
Q: On January 1, 2017, Sage Hill Inc. borrowed and received $410,000 from a major customer, Cheyenne…
A: Discount on Notes Payable = Notes Payable - Notes Payable x Present value factor (7%, 4 years) =…
Q: On January 1, 2022, De Vera Company loaned Dagpin Company amounting to P2,000,000 and received a…
A: The usage rate is known as the effective interest rate that is actually paid by the borrower of the…
Q: On April 1, 2021, Baker Construction, Inc. signed a note for a loan from its bank. The following are…
A: The journal entries are prepared by the company to record the monetary transactions of the company…
Q: On June 1, 2017, Santos Furniture Co. borrowed P5,000,000 (face value) from Sonic Co., a major…
A: Answer - Working Note : Computation of Discount on Note Payable : = Borrowed amount - (borrowed…
Q: On December 31, 2021, The Essence Finance Company had P5,000,000 note receivable from Galena…
A: When there are certain indications that the recoverable amount from the asset has been declined…
Q: On May 1, 2020, Christina Fashions borrowed $106,000 at a bank by signing a four-year, 6% loan. The…
A: Interest payable is a liability any individual or company owes for the obligation to be repaid. It…
Q: On January 1, 2018, a company received ₱2,000,000, 12% notes. The effective interest rate for…
A: Assets part of the balance sheet is classified into two groups; Current Assets and Non-Current…
Q: On January 1, 2018, King Inc. borrowed $190,000 and signed a 4-year, note payable with a 10%…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: On April 1, 2020, NYC Corporation secures a loan with a finance company, using its accounts…
A: Formula: Finance charge amount = Receivable amount x % of charge
Q: On September 1, 2017, Brita Hawtof Company signed a $75,000, nine month, 6 percent note payable. The…
A: Prepare journal entry the interest accrued but not paid.
Q: On January 1, 2020, Avery Co. borrowed and received $400,000 from a major customer evidenced by a…
A: Step 1: a. Compute the discount on notes payable as follows:
Q: Cars Inc. issued 120 day note in the amount of $360,000 on November 1, 2016 with an annual rate of…
A: Solution: Amount of interest accrued as of Dec 31, 2016 = Amount of note * Interest rate * Period…
Q: Sammy Company, a calendar-year company, has a 6% note receivable dated November 1, 2020 in the…
A: Answer) In the given question, the company had note receivable of P 3,000,000 on November 1, 2020…
Q: On July 1, 2021, a company loans one of its employees $27,000 and accepts a eight-month, 8% note…
A:
Q: "On 1 September 2014, Select Company borrowed P600,000 from a bank and signed a 12%, six-month note…
A: Borrowed amount = P 600,000 Interest rate = 12% Period from 1 September 2014 to 31 December 2014 = 4…
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 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P1,500,000 and…
A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…
Q: On May 1, 2020, Christina Fashions borrowed $106,000 at a bank by signing a four-year, 6% loan. The…
A: Interest is the amount paid over and above the principal amount to the lender. Basically, it is the…
Q: On July 1, 2021, MegaMoney, Inc. loaned money to ShortOfCash company (SOC). MegaMoney had SOC sign a…
A: A journal entry is a form of accounting entry that is used to report a business transaction in 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 December 31, 2017, Firth Company borrowed $62,092 from Paris Bank, signing a 5-year, $100,000…
A: (a) Prepare the entry (if any) to record the impairment of the loan on December 31, 2019, by Paris…
Q: On January 1, 2021, CPS Co. borrowed $340,000 cash from iLend and issued a five-year $340,000, 4%…
A: Interest Expense: The cost of debt which is incurred during a particular accounting period is called…
Q: On December 31, 2021, the Trust Finance Company had a P5,000,000 note receivable from Leila Company.…
A: Given, Notes receivable = P5,000,000 Interest rate = 10% Accrued interest = P500,000 Reduction of…
Q: On September 1, 2021, Sheffield Corp. issued a note payable to National Bank in the amount of…
A: A promissory note seems to be a signed promissory note. The borrower borrows a particular amount of…
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: 33. On August 1, 2011, Hampton Construction received a 9 percent, six-month note receivable from…
A: Answer: Assuming that Dusty Roads pays the note plus accrued interest in full. Entry for Collection…
Q: On January 1, 2018, King Inc. borrowed $190,000 and signed a 5- year, note payable with a 10%…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
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: LARA Company secured a bank loan of $ 90,000, on 1/4/2020. In return, it signed a 10 month, 6%, note…
A: The adjustment entries are made to adjust the revenues and expenses of the current year.
Q: Megabank granted an 8% 3-year loan to Global Company on January 1, 2018. The interest on the loan is…
A: Step 1 An amortized loan is a loan accounting over the tenure of loan subject to the cash flows over…
Q: On September 15, 2018, Oliver's Mortuary received a $7,200, nine-month note bearing interest at an…
A: Note Receivable is the amount receivable on account of note received from customer.
Q: On January 1, 2018, a business borrowed $18,000 on a five-year, 5% note payable. At December 31,…
A:
Q: On december 31, 2017, Precious Company sold an equipment with carrying amount of 2,000,000 and…
A: Solution Given Annual payment 500000 Number of years 10 years Note issue date…
Q: On January 1, 2018, a business borrowed $18,000 on a five-year, 5% note payable. At December 31,…
A:
Q: How much interest expense should be accrued
A: Interest charged on the principal amount at a fixed rate for a fixed period of time is known as…
Q: Included in Allen Corp.'s balance sheet at June 30, 2015 is a 10%, $3,000,000 note payable. The note…
A: Accrued interest payable represents the interest that has been accrued to be paid but not yet paid…
Q: On February 1, 2021, a company loans one of its employees $21,000 and accepts a nine-month, 8% note…
A: Interest = Principal x rate of interest x no. of months/12 months
Q: On June 1, 2018, Bodie Co. accepted a $9,300 face value note as evidence of a loan it made to T…
A: Solution: Interest revenue will be recognized in 2018 will be interest for 7 months that is from…
Q: On July 1, 2017. Agincourt Inc. rendered services in exchange for a 4%. 8-year promissory note…
A:
Q: On April 1, 2015, a company received a one-year note receivable bearing interest at the market rate.…
A: On issuing the note bearing interest rate at market rate, the interest is accrued every month till…
Q: On December 1, 2021, Nicole Company gave Dawn Company a P2,000,000, 12% loan. Nicole Company paid…
A: The following calculations are done for Nicole Company.
Q: What is the total receivable related to the loan to ABC on Dec. 31, 2021?
A: Calculation of carrying amount of loan Loan Amount 5,000,000 Direct origination costs…
Q: ,000 on November 1, 2020. On the same date, the company issued a 60 day, 12% promissory note to the…
A: When the interest expense is accrued for the period, it becomes an obligation and is transferred to…
Q: On January 1, 2014, Fabco borrowed $5,000,000 from First Bank of Newburg. The loan had a term of…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: On July 1, 2020, Marin Inc. made two sales: 1. It sold excess land in exchange for a four-year,…
A: Notes Receivables:-It is a written legal document where one party promise to another party to pay…
Q: On October 1, 2021, Oberley Corporation loans one of its employees $40,000 and accepts a 12-month,…
A: The books of accounts are maintained under the accrual basis of accounting where revenue and…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.Note Payable and Accrued Interest Fairbome Company borrowed $60,000 on an 8%, interest-bearing note on October 1, 2019. Fairborne ends its fiscal year on December 31. The note was paid with interest on May 1, 2020. Required: 1. Prepare the entry for this note on October 1, 2019. 2. Prepare the adjusting entry for this note on December 31, 2019. 3. Indicate how the note and the accrued interest would appear in the balance sheet at December 31, 2019. 4. Prepare the entry to record the repayment of the note on May 1, 2020.Exercise 1-39 Current Assets and Current Liabilities Hanson Construction has an operating cycle of '5' months. On December 31. 2019, Hanson has the following assets and liabilities: A note receivable in the amount of $1500 10 be collected in 6 months Cash totaling $1,380 Accounts payable totaling $2,100, all of which will be paid within 2 months Accounts receivable totaling $12,000, including an account for $7,000 that will be paid in 2 months and an account for $5,000 that will be paid in 18 months Construction supplies coming $6,200, all of which will be used in construction within the next 12 months Construction equipment costing $60,000 on which depreciation of $22,400 has accumulated A note payable to the bank in the amount of $6,800 is to be paid within the next year Required: Calculate the amounts of current assets and current liabilities reported on Hansons balance sheet at December 31, 2019. CONCEPTUAL CONNECTION Comment on Hansons liquidity.
- 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.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.Interest Payable—Quarterly Adjustments Glendive takes out a 12%, 90-day, $100,000 loan with Second State Bank on March 1, 2016. Assume that Glendive prepares adjusting entries only four times a year: on March 31, June 30, September 30, and December 31. Required Prepare the journal entry on March 1, 2016. Prepare the adjusting entry on March 31, 2016. Prepare the entry on May 30, 2016, when Glendive repays the principal and interest to Second State Bank.
- 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. $5,600Reporting Liabilities Morton Electronics had the following obligations: a. A legally enforceable claim against the business to be paid in 3 months. b. A guarantee given by a seller to a purchaser to repair or replace defective goods during the first 6 months following a sale. c. An amount payable to Bank One in 10 years. d. An amount to be paid next year to Citibank on a long-term note payable. Required: CONCEPTIJAL CONNECTION Describe how each of these items should be reported in the balance sheet.
- (Appendix 21.1) Comprehensive The following are Adair Companys December 31, 2018, post-closing trial balance and the December 31, 2019, adjusted trial balance: A review of the accounting records reveals the following additional information for 2019: Investments in bonds to be held to maturity were purchased at year-end for 8,600. A building was purchased for 28,000. A note payable was issued for 9,000. Common stock was issued for 14,500. Dividends of 6,500 were declared and paid. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support the 2019 statement of cash flows for Adair. 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Unearned Revenue Jennifers Landscaping Services signed a $400-per-month contract on November 1, 2019, to provide plant watering services for Lola Inc.s office buildings. Jennifers received 4 months' service fees in advance on signing the contract. Required: 1. Prepare Jennifers journal entry to record the cash receipt for the first 4 months. 2. Prepare Jennifers adjusting entry at December 31, 2019. 3. CONCEPTUAL CONNECTION How would the advance payment (account(s) and amounts(s)] be reported in Jennifers December 31, 2019, balance sheet? How would the advance payment [account(s) and amount(s)] be reported in Lolas December 31, 2019, balance sheet?