On October 1, 2021, Home Company issued to Security Bank c. Payment of the note payable on the date of maturity a P6,000,000, 8-month, noninterest-bearing note. The note payable was discounted by the bank at 12%. Required: 1. Prepare the appropriate journal entry by Home Company to record the issuance of the note. 2. Prepare the adjusting entry on December 31, 2021. 3. Present the note payable on December 31, 2021. 4. Prepare the journal entry to record the discount amortization and payment of the note payable on June 1, 2022, date of maturity. 5. Prepare the journal entry to record the following assuming the note had been structured as a 12% note with interest and principal payable at maturity: a. Issuance of the note payable on October 1, 2021 b. Accrued interest payable on December 31, 2021
On October 1, 2021, Home Company issued to Security Bank c. Payment of the note payable on the date of maturity a P6,000,000, 8-month, noninterest-bearing note. The note payable was discounted by the bank at 12%. Required: 1. Prepare the appropriate journal entry by Home Company to record the issuance of the note. 2. Prepare the adjusting entry on December 31, 2021. 3. Present the note payable on December 31, 2021. 4. Prepare the journal entry to record the discount amortization and payment of the note payable on June 1, 2022, date of maturity. 5. Prepare the journal entry to record the following assuming the note had been structured as a 12% note with interest and principal payable at maturity: a. Issuance of the note payable on October 1, 2021 b. Accrued interest payable on December 31, 2021
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 11E
Related questions
Question
Problem 2(with solution)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub