On November 01, 2014 MM Co. discounted three notes from HSBC bank. Bank charged 16%interest. Note 1: 10%, 20,000 note receivable, for 6 months received at July 01, 2014. Note 2: 15%, 50,000 note receivable, for 6 months received at September 01, 2014. Required: record the discounting of all above two notes in Company’s general journal. Show all the calculations.

Q: Accounting for a note receivable On June 6, Lakeland Bank & Trust lent $80,000 to Stephan Stow…

A: Interest on note receivable = Note receivable x rate of interest x days/365  = $80,000*9%*30/365 =…

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

A: Interest expense for first installment = Notes payable x rate of interest x no. of months in…

Q: On October 1, 2011, Coast Financial loaned Barr Corporation$300,000, receiving in exchange a…

A: Maturity date of Notes = October 1, 2011 + 9 months = July 1, 2012 No. of Months from January 1,…

Q: Dynatech Supply Corp. has the following selected transactions for notes receivable. Nov. 1 Lent…

A: Notes receivable: It is a written document by which the other person promises to pay a certain…

Q: Selkirk Company obtained a $15,000 note receivable from a customer on January 1, 2021. The note,…

A: Given information is: Selkirk Company obtained a $15,000 note receivable from a customer on January…

Q: Leek Company receives a $12,000, 3-month, 5% promissory note from Rey Company in settlement of an…

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

Q: Accounting for a note receivable On June 6, Lakeland Bank & Trust lent $80,000 to Stephan…

A: When money is lent against notes, the notes receivable (asset) is debited and cash is credited.

Q: At December 31 year-end, Crain Corporation has an $8,400 note receivable from a customer. Interest…

A: A note receivable is a document which is written promise made which indicates an amount to be…

Q: Rosen Company receives a $9,000, 3-month, 6% promissory note from Bay Company in settlement of an…

A:

Q: On November 30, accounts receivable in the amount of P900,000 were assigned to Turon Finance Co. by…

A: Accounts Receivable (AR) are the profits or revenues that a business expects to receive from…

Q: Sylvestor Systems borrows $50,000 cash on May 15 by signing a 60-day, 5%, $50,000 note.   1. On what…

A: Note payable is one form of liability for the business, which needs to be paid or settled within a…

Q: On May 1, 2014, Nico Company sold merchandise to Customer Francis and received a P26,400 (face…

A: Present value of note receivable on May 1, 2014 = Face value of note x present value factor (10%, 1…

Q: At December 31 year-end, Crate Company has an $8,700 note receivable from a customer. Interest of 8%…

A: All assets of a company are reported in the balance sheet. Since note receivable is an asset, it…

Q: On 7/1, the Knight's Stop took out a loan in the amount of $35,000 from Fairwinds Credit Union and…

A: Concept : Journal Entry records a business transaction following double entry accounting system.In…

Q: On October 1, 2017 Chung. Inc. assigns $1,000,000 of its accounts receivable to Seneca National bank…

A:

Q: Naughty Co. has a 12% note receivable dated June 30, 2009 in the original amount of P3,000,000.…

A: Interest accrued on June 30, 2011 = Net Note receivable amount x rate of interest x no. of months in…

Q: The following information is available about Friends Company: a) Friends Company borrowed cash from…

A: It is pertinent to note that for discounted note interest payment is made upfront on the date of…

Q: In reporting the note in Karen Company statement of financial position, prior to maturity what rate…

A: Prime Rate is the interest rate charged by commercial banks to their most creditworthy customers.

Q: Sylvestor Systems borrows $96,000 cash on May 15 by signing a 60-day, 7%, $96,000 note.   1. On what…

A: SOLUTION- 1                                      CALCULATION OF DATE OF MATURE OF NOTE DATE OF…

Q: On November 1, Kotler Company accepted a 3-month note receivable as payment for services provided to…

A: From November 1 to December 31 = 2 months Interest accrued on December 31 = $9,000 x 6% x 2/12 = $90…

Q: On May 1, Huxley, Inc borrowed $146,000 cash from First Banc Corp under a six-month…

A: Non-Interest bearing note refers to the note payable in which there is no interest rate. It is…

Q: On December 1, 2016, Old Car Co. borrowed money at the bank by signing a 90-day non-interest-bearing…

A: Working note:

Q: On September 1, 2015, Excellent Company received an $80,000, 12%, 120-day note from a credit…

A: Cash received from bank = Maturity value - Discount charged by the bank

Q: Hasty and Tasty Foodservice received a 120-day, 7% note for $84,000, dated June 12, from a customer…

A: In case of a credit sale, the customer is given an option to make payment for the sale within a…

Q: On October 1, 2017 Chung. Inc. assigns $1,000,000 of its accounts receivable to Seneca National bank…

A: Assigning of account receivable to bank means right given to bank to collect amount  from account…

Q: On June 30, 2018, the High Five Surfboard Company had outstanding accounts receivable of $600,000.…

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

Q: Sylvestor Systems borrows $110,000 cash on May 15 by signing a 60-day, 12%, $110,000 note. 1. On…

A: Interest on Notes = Face value of Notes x rate of interest x time = $110,000 x 12% x 60/360 = $2,200

Q: Selected transactions of Shadrach Computer Corporation during November and December of 2016 are as…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: On October 1, Ramos Co. signed a $90,000, 60-day discounted note at the bank. The discount rate was…

A: Discount on notes payable = Amount of note payable x discount rate = $90000 x 6% = $5400

Q: On September 1, 2012, Lowe Co. issued a note payable to National Bank in the amount of $900,000,…

A: GIVEN: On 1 Sep 2012 Lowe co. issued note payable to national bank for $900000 Interest rate = 12%…

Q: Sylvestor Systems borrows $63,000 cash on May 15 by signing a 120-day, 6%, $63,000 note. 1. On what…

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

Q: Coldwell, Inc. issued a $100,000, 4-year, 10% note at face value to Flint Hills Bank on January 1,…

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: On March 1, 2016, ASG Co. assigned its P1,900,000 accounts receivable to DXB Bank in exchange for a…

A: solution given Date of assignment March 1 2016 Amount of account receivable assigned…

Q: Hermes Inc. received on January 1, 2017, a $22,800 4-year zero-interest bearing note for lending…

A: Note represents the liabilities on which a percentage of interest has to be paid.

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.

Q: Selkirk Company obtained a $15,000 note receivable from a customer on January 1, 2018. The note,…

A: Prepare journal entries.

Q: Valley Designs issued a 90-day, 10% note for $48,000, dated April 22, to Bork Furniture Company on…

A: A journal entry is used to reflect a business deal in a company's accounting records. A journal…

Q: Sylvestor Systems borrows $70,000 cash on May 15 by signing a 90-day, 5%, $70,000 note. 1. On what…

A: Notes payable are the written agreement in which maker of the note promises to pay a certain amount…

Q: On October 1, 2017, Chung, Inc. assigns $1,000,000 of its accounts receivable to Seneca National…

A: In the books of Chung, Inc.: Date Account Titles and Explanation Debit Credit October 1, 2017…

Q: Shown below are selected transactions of Gulf Corp. during the month of December 2011. Dec. 1…

A: Adjusted balance in the Unrealized Holding Gain (or Loss) on Investments account at December : In…