On October 1, 2017, Chung, Inc. assigns $1,000,000 of its accounts receivable to Seneca National Bank as collateral for a $750,000 note. The bank assesses a finance charge of 2% of the receivables assigned and interest on the note of 9%. Prepare the October 1 journal entries for both Chung and Seneca.

Q: On December 1, 2017, Kreme Company assigned on a nonnotification basis accounts receivable of…

A: A loan taken by a company by assigning its accounts receivables to the bank. This means that the…

Q: Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2021, year-end…

A: SOLUTION-1 IN ADDITION TO SALES REVENUE $1340000 THE 2022 INCOME STATEMENT WILL INCLUDE 1-INTEREST…

Q: Dab Company provides 1,200,000 of its account receivables to investment bank for notes 600,000 on…

A: The account receivables of a company are referred to as the amount that a company has to receive…

Q: On March 1, 2018, Bodie Co. accepted a $7,900 face value note as evidence of a loan it made to T…

A: Solution: Time period in 2018 = March 1 to Dec 31 = 10 months Face value of note = $7,900 Interest…

Q: n January 1, 2021, Dark Company has a note payable to bank in the amount  P2,800,000. Transactions…

A: Note payable is the amount of borrowed money that is to be paid in the future at a particular date.…

Q: On December 1, 2020, Company assigned specific accounts receivable totalling P4,000,000 as…

A: given that, The company assigned specific accounts receivable totaling P4,000,000 as collateral on a…

Q: The trial balance for BLUE Corporation prepared at December 31, 2020 showed a balance of P4,000,000…

A: Notes receivable refers to the promissory note issued by the debtor for the credit purchase made by…

Q: On April 1, 2017, Indigo Company assigns $549,400 of its accounts receivable to the Third National…

A: Account receivable:The amount of money to be received by a company for the sale of goods and…

Q: On December 1, 2016, Bamboo Company assigned specific accounts receivable totaling P4,000,000 as…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: 5. On October 1, 2021, Gomez Inc. assigns $1,600,000 of its accounts receivable to Ottawa National…

A: Finance charge (Interest expense ) = $1,600,000×2% = $32,000

Q: On March 1, 2021, X Co. assigns $60,000 of its accounts receivable as a collateral for a loan from…

A: Interest = 47000* 1% = 470 Principal repayment = 10,000

Q: On December 1, 2020,  Company assigned specific accounts receivable totalling P4,000,000 as…

A: Accounts receivable refers to the amount of goods and services rendered on credit but not payment…

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

A: SOLUTION- ACCOUNTS RECEIVABLE   IS A BALANCE  OF MONEY DUE TO A FIRM FOR GOOD OR SERVICES DELIVERED…

Q: The trial balance for BLUE Corporation prepared at December 31, 2020 showed a balance of P4,000,000…

A: Interest income on the non-interest-bearing note is calculated by applying the market interest rate…

Q: Aunt May, Inc. had the following receivable financing transactions for the fiscal year ended August…

A: SOLUTION A JOURNAL IS AN COMPANY'S OFFICIAL BOOK IN WHICH ALL BUSINESS TRANSACTIONS ARE RECORDED IN…

Q: On April 1, 2014, Somers Company assigns $200,000 of its accounts receivable to Third National Bank…

A: Working note: Computation of finance charges: Finance charges=Accounts receivable assigned×Rate of…

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

A:

Q: On December 1, 2020, Papa Po Company assigned specific accounts receivable totaling P200,000 as…

A: Carrying amount is defined as the asset original cost minus the accumulated depreciation, and at…

Q: On June 30, 2018, Munoz Company’s total current assets were $503,500 and its total current…

A: Working capital = Current assets - Current liabilities   Current ratio = Current assets / Current…

Q: On May 15, Maynard Co. borrowed cash from Texas Bank by issuing a 60-day note with a face amount of…

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: On October 31, 2021, COVID borrowed $400,000 at 11% interest and pledged $500,000 in accounts…

A: The loan is the amount a business organization borrows from any financial institution or any third…

Q: On July 1, 2017, KYU Co. discounted a 90-day, P850,000, 12% note, received from a customer on June…

A: Bills of exchange: Bills of exchange or notes are prepared for the smooth functioning of trade.…

Q: The trial balance for BLUE Corporation prepared at December 31, 2020 showed a balance of P4,000,000…

A: Carrying value of the non-interest bearing promissory note is calculated by discounting the face…

Q: Keesha Co. borrows $200,000 cash on November 1, 2017, by signing a 90-day, 9% note with a face value…

A: Notes are a form of debt taken by the company, on which business has to pay interest payments. This…

Q: On April 1, 2018, Audrey Company assigned accounts receivable totaling P400,000 as collateral on a…

A: Journal Entries

Q: On October 1, 2020, Ayayai, Inc. assigns $1,263,100 of its accounts receivable to Pina National Bank…

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

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: The trial balance for BLUE Corporation prepared at December 31, 2020 showed a balance of P4,000,000…

A: Notes receivable is the financial instrument issued by the debtor for the item or goods purchased on…

Q: On December 1, 2020, Company assigned specific accounts receivable totalling P4,000,000 as…

A: The balance due to the company for goods and services provided but not yet charged by customers is…

Q: THREE FLAGS Co. borrowed $100,000 from the Bull Run Bank on September 1, 2018.  The note earns…

A: Interest accrued on December 31, 2018 = Amount borrowed x rate of interest x no. of months / 12 =…

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: Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2021, year-end…

A: Balances of December 2021 has been computed as below

Q: The trial balance for BLUE Corporation prepared at December 31, 2020 showed a balance of P4,000,000…

A: The carrying value of the notes receivable is the sum of the notes receivable initially recognized…

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: On October 1, 2020, Shamrock, Inc. assigns $1,160,700 of its accounts receivable to Bridgeport…

A:

Q: On December 1, 2017, Marin, Inc. assigns $ 3,380,000 of its accounts receivable to Sweet Acacia Bank…

A: It will deduct by bank in payment of notes.

Q: On September 1, QUEROL COMPANY assigns specific receivables totaling P750,000 to Davao Bank as…

A: The interest expense may be a non-operating expense shown on the operating statement. It’s primarily…

Q: note from certain bank. The company will continue to collect the assigned receivable. In addition to…

A: Factoring is a transfer of funds where a firm passes its debts to a financing company.This factor…

Q: On December 1, 2016, Bamboo Company assigned specific accounts receivable totaling P4,000,000 as…

A: 1) Calculation of the  amount should be disclosed as the equity of Bamboo Company in assigned…

Q: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank.…

A: Formula: Cash received = Maturity value - Discount

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…