On October 1, Eli's Carpet Service borrows $125,000 from Bank on a 3 month, $125,000, 8% note. What entry must Eli's Carpet Service make on December 31 before financial statements are prepared?
Q: On November 7, Mura Company borrows $150,000 cash by signing a 90-day, 10%, $150,000 note payable.…
A: Accrued interest is the term of accounting which states the interest amount that has been incurred…
Q: On September 1, Purifier Company borrowed $12,000 on a 6-month, 4%, short-term note payable. How…
A: Interest expense recorded on December 3 = Amount borrowed x rate of interest x No. of months / 12…
Q: On October 1, 2010, the company deposits 12.000 TL in a bank account for 1 year at 10%. Which entry…
A: Accrued revenues are those revenues which are earned but not received in the business. These are…
Q: Coronado Music Store borrowed $33600 from the bank signing a 10%, 3-month note on September 1.…
A: Working notes Monthly principal amount $33600 / 12 = 2800 Monthly interest 2800 * 10% = 280 When an…
Q: On September 1, 2021, Allied Moving Corp. borrows $90,000 cash from First National Bank. Allied…
A: In this question, we need to record the issue of notes payable. By issue of notes payable, the…
Q: Sheridan Company borrows $37,800 on July 1 from the bank by signing a $37,800, 8%, one-year note…
A: Sheridan Company has borrowed on July 1. Interest for 6 months is due as on 31st December. Interest…
Q: adjusting entry should be made
A: Interest revenue = Amount of note receivable * Rate of interest * Number of months expired/12 months…
Q: On January 5, Daisy Co., which follows a calendar year accounting, issued $1,000,000 of notes…
A: Long term debt = Total notes payable - current portion = $1000000 - 250000 = $750,000
Q: C.S. Oriole Company had the following transactions involving notes payable. July 1, 2022 Borrows…
A: Prepare the journal entries: Date Accounts title and explanation Debit ($) Credit ($) 1-Jul-22…
Q: On December 1, Williams Company borrowed $50,000 cash from Second National Bank by signing a 90-day.…
A: Note payable is a form of debt taken by the company on which business has to pay interest on…
Q: A company borrowed 20.000 TL from the bank signing a 9%, 3-month note on September 1. Principal and…
A: >The adjusting entries are made at the end of period to provide for correct balances for various…
Q: Sunland Company had the following transactions involving notes payable. July 1, 2022 Borrows…
A: Note payable is a kind of loan which is repaid after certain period of time with specific rate of…
Q: On October 1, Eli's Carpet Service borrows $300,000 from First National Bank on a 5-month, $120,000,…
A: Accrued Interest means the Interest which is already due but not paid with in the specific due…
Q: On October 1, Eli's Carpet Service borrows $125,000 from First National Bank on a 3-month, $125,000,…
A: Accrued Interest means the Interest which is already due but not paid with in the specific due date…
Q: On January 1, 2022, the ledger of Sunland Company contained these liability accounts. Accounts…
A: When a liability has to be settled within one operating cycle or 1 year it is called current…
Q: Things to remember -The business began on August 1, 2018, and has selected a July 31, 2019, fiscal…
A: Journal entry is the original book of entry in which all the transactions relating to business are…
Q: Hamada Company borrows $20,000 on October 1 from Arab bank by signing a $20,000, 10%, six month note…
A: Given, Amount borrowed = $20,000 Interest Rate = 10%
Q: n June 1, Swifty Company borrows $120,000 from First Bank on a 6-month, $120,000, 8% note.…
A:
Q: C.S. Lewis Company had the following transactions involving notes payable. July 1, 2012 Borrows…
A: Notes Payable: Notes Payable refers to a liability where a borrower records a written promise to…
Q: On September 1, 2021, Allied Moving Corp. borrows $90,000 cash from First National Bank. Allied…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: On January 1, 2022, the ledger of Sunland Company contained these liability accounts. Accounts…
A: Journal entry:-Way of recording any transaction of a company with debit and credit side. It works on…
Q: Skysong, Inc. had the following transactions involving notes payable. July 1, 2022 Borrows…
A: Interest accrued on Dec. 31, 2022 = (52500*8%*6/12)+(63000*6%*2/12) = $2100 + 630 = $2730
Q: On April 1, a company provides services to one of its customers for $13,000. As payment for the…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: C.S. Carla Vista Company had the following transactions involving notes payable. July 1, 2022…
A: Note payable are a form of debt taken by a company on which it has to pay regular interest payments.
Q: Keesha Company borrows $115,000 cash on November 1 of the current year by signing a 180-day, 11%,…
A: Introduction: A promissory note, also known as a note, is a written promise to pay a sum of money at…
Q: On October 1, 2010, the company deposits 12.000 TL in a bank account for 1 year at 10%. Which entry…
A: Interest Revenue = Deposit amount * Rate * Period
Q: C.S. Lewis Company had the following transactions involving notes payable. July 1, 2014 Borrows…
A: Interest accrued on Dec 31. 2019 = Amount borrowed x rate of interest x no. of months /12 Trident…
Q: On January 1, 2022, the ledger of Pharoah Company contained these liability accounts. Accounts…
A: Journal entry: It is also called as book of original entry. All financial transactions occurred in a…
Q: Travis County Bank agrees to lend Brickyard Corporation $200,000 on January 1. Brickyard signs a…
A: Supporting calculation:
Q: On September 1, 2021, Allied Moving Corp. borrows $90,000 cash from First National Bank. Allied…
A: Notes payable: It is an instrument where the borrower borrows the money from the lender and issues…
Q: On September 1, 2021, Alled Moving Corp. borrows $90,000 cash from First National Bank. Alled signs…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: On November 1, Jasper Company loaned another company $230,000 at a 12.0% interest rate. The note…
A: Solution: Adjusting entries are journal entries usually made at the end of an accounting period to…
Q: On September 1, Sky Mountain Company borrowed $57,000 on a 8%, 9-month note payable to Coast…
A: solution given Amount borrowed $57000 Date of borrowing September 1 Rate of interest…
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: On January 1, 2018, a business borrowed $18,000 on a five-year, 5% note payable. At December 31,…
A:
Q: On November 7, Mura Company borrows $160,000 cash by signing a 90-day, 8%, $160,000 note payable. 1.…
A: Interest = Principal x Rate x Time
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: C.S. Ivanhoe Company had the following transactions involving notes payable. July 1, 2022…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: On October1, 2020 Sue's Carpet Service borrows $ 125.000from the Bank on a 3-month, $ 125.000, 8%…
A: Given: Amount borrowed = $125,000 Period = 3 months Rate = 8%
Q: On June 1, Granulite Inc borrows $150,000 from the bank by signing a 2-month, 2.0% bank loan.…
A: Journal Entries - It refers to the primary books of accounts in which transactions are recorded in…
Q: On November 1, 2021, Aviation Training Corp. borrows $44,000 cash from Community Savings and Loan.…
A: Working Note: 1. 31-Dec 2021 Interest payable account = ($44,000 *6%*2/12) = $440 2. 1-Feb 2022 =…
Q: Ivanhoe Company borrows $48,000 on July 1 from the bank by signing a $48,00O, 14%, 1-year note…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: On November 1, 2021, Aviation Training Corp. borrows $44,000 cash from Community Savings and Loan.…
A: Notes: Accrued Interest = $44000 x 6% x 2/12 = $440 Interest expense = $44000 x 6% x 1/12 = $220
Q: . Lewis Company had the following transactions involving notes payable. July 1, 2014 Borrows…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: On September 15, Jas Motor Service Center issued a 90-day, 18% note amounting to P10,000 for a loan…
A: The entries are passed in the books of Jas Motors Service Centre Date Particulars Debit Credit…
On October 1, Eli's Carpet Service borrows $125,000 from Bank on a 3 month, $125,000, 8% note. What entry must Eli's Carpet Service make on December 31 before financial statements are prepared?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.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 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 ExpenseCost 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)?Homeland Plus specializes in home goods and accessories. In order for the company to expand its business, the company takes out a long-term loan in the amount of $650,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 8.5%. Each year on December 31, the company pays down the principal balance by $80,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.
- Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.McMasters Inc. specializes in BBQ accessories. In order for the company to expand its business, they take out a long-term loan in the amount of $800,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 9%. Each year on December 31, the company pays down the principal balance by $50,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.
- 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?If a customer owed your company $100 on the first day of the month, then purchased $200 of goods on credit on the fifth and paid you $50 on fifteenth, the customers ending balance for the month would show a (debit or credit) of how much?Payroll 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.