On October 31, 2021, COVID borrowed $400,000 at 11% interest and pledged $500,000 in accounts receivables as collateral. Additionally, COVID was charged a finance fee equal to 1% of the borrowed amount. At the end of December, $350,000 of the assigned receivables were collected and remitted to .the lender along with accrued interest Required: (Show your Working. You have the option to upload your answer/working for this question via (the provided Ilink/ button Prepare journal entries to record (A) the borrowing, the assignment of receivables, (B) the collection on the receivables, and (C) the recognition of interest .expense

On October 31, 2021, COVID borrowed $400,000 at 11% interest and pledged $500,000 in accounts receivables as collateral. Additionally, COVID was charged a finance fee equal to 1% of the borrowed amount. At the end of December, $350,000 of the assigned receivables were collected and remitted to .the lender along with accrued interest Required: (Show your Working. You have the option to upload your answer/working for this question via (the provided Ilink/ button Prepare journal entries to record (A) the borrowing, the assignment of receivables, (B) the collection on the receivables, and (C) the recognition of interest .expense

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
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