Perfect Pet Company gave a creditor a 90-day, 6% note payable for $28,000 on December 1, 2019. What amount of interest will be accrued as of December 31, 2019? Where will this amount be reported in the company’s financial statements

Q: Record the journal entries for Bank’s Hardware Store for the following transactions. If an amount…

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

Q: At the end of 2020, the business has a notes payable with maturity value of TL60.000. The maturity…

A: Discount on notes payable  = Maturity value x rate of discount x no of months/12 = TL 60000 X 20% X…

Q: about the homework of Intermediate Accounting: Reporting and Analysis 3rd Edition Chapter 6, Problem…

A: Step 1 The discount on note receivable of $78 is obtained by multiplying the present value of…

Q: On July 1, 2019, John Deere signed a $100,000, one year, 6% note payable. The principal and interest…

A: The accrual basis concept is used to record the revenues and expenses in the income statement. The…

Q: Note Company provided the following information on its notes payable as of December 31, 2020: Note…

A: Liability is a sum of money an individual or organization owns. Current liabilities are an…

Q: On January 1, 2019, Love Co. sold merchandise to Kit Store in exchange for a non-interest bearing…

A: Formula: Interest amount = Bond face value x Interest rate Multiplying bond face value with interest…

Q: On January 1, 2019, Johnson Corporation issued a 2-year note due December 31, 2020, with a face…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: MCM Company issued a note receivable to a customer on September 1, 2020. The face value of the note…

A: Note receivable is considered as a negotiable instrument. It represents the claim amount due on the…

Q: Florenda Quino Forwarders borrowed P600,000 from the bank on Sept. 1, 2019. The note carried an 8%…

A: Solution: The interest rate is missing, so I looked for similar questions and found that it is 8%:…

Q: sparkling water inc. had a total sales of 3,000,000 for 2019. this amount includes 150,000 relating…

A: Net sales =  total sales - sales of extended service-type warranty = 3000000 - 150000 = 2,850,000

Q: Arvan Patel is a customer of Bank's Hardware Store. For Mr. Patel's latest purchase on January 1,…

A: Definition: Liabilities: The claims creditors have over assets or resources of a company are…

Q: On October 12, 2020, Golf Co. received from one of its customers, Ping Co., a $30,500, 8% 90 day…

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

Q: On October 12, 2020, Golf Co. received from one of its customers, Ping Co., a $30,500, 8% 90 day…

A: Interest accrued on December 31, 2020 = Face value of note x interest rate x no. of days/360 =…

Q: On July 1, 2021, a company loans one of its employees $23,000 and accepts a ten-month, 8% note…

A: Revenue is the amount that a company earns from normal activities conducted by the business for…

Q: ABC Corporation’s liability account balances at June 30, 2018, included a 10% notes payable in the…

A: What amount should be recorded as accrued interest for this note:- Accrued interest:-       =…

Q: On December 31, 2019, the Notes Payable account at Vanessa’s Boutique Shop had a balance of $62,800.…

A: Interest which has been accrued but which was not paid as on the balance sheet date is to recorded…

Q: On December 1, 2021, Liang Chemical provides services to a customer for $90,000. In payment for the…

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

Q: The 90-day non-interest bearing note amounting to ₱50,000 was issued on November 30, 2019. The…

A: Interest on non interest bearing bond can be calculated by charging interest on the face value of…

Q: On September 1, 2019, Melanie Corp. borrowed $101,000 in cash and executed a 6-percent,…

A: The total rate of investment a lender pays on a debt obligation during the course of borrowing is…

Q: On Jan. 1, 2020, EC Company reported a note payable of P 1,200,000. The note is dated Oct. 1, 2019,…

A: Given that,  Notes payable as on Jan 1 2020 = P1200000  Rate of interest = 12%

Q: Arvan Patel is a customer of Bank's Hardware Store. For Mr. Patel's latest purchase on January 1,…

A: Journal entry is the process of documenting commercial transactions for the first time in the books…

Q: 2. On July 1, 2019, XYZ Co. borrowed P2,000,000 and İssued a one-year promissory note. The lender…

A: The notes payable is an agreement where the borrower promises to pay interest and principal at…

Q: Frame company has an 8% note receivable dated June 30, 2021, in the original amount of P1,500,000.…

A: Original Amount of Note receivable = 1500000 Yearly principal payment = 500000 Interest rate = 8%…

Q: On September 1, 2021, Middleton Corp. lends cash and accepts a $1,000 note receivable that offers 18…

A: The 6 months note issued on September 1, 2021. The interest will be earned for 4 months in 2021…

Q: on october 1, 2019, Island Jewelry company accepted a 4 -month, 10% note fot $2,400 in settlement of…

A: Note Receivable: A note receivable is a written agreement or promise to receive a specific amount of…

Q: Cardinal Company, a dealer in lawn equipment, accepted a 6 month note receivable from a customer on…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: A bank lent P350,000 to a customer on December 1, 2019 that required the customer to pay an annual…

A: Loan receivable is referred to as the assets of the organization.

Q: On January 1, 2018, The Barrett Company purchased merchandise from a supplier. Payment was a…

A: Given values: Note period = 5 years. Annual payment = $ 20000 Lump sum payment = $ 100000

Q: On January 1, 2019, Love Co. sold merchandise to Kit Store in exchange for a non-interest bearing…

A: Value of notes receivable as of January 1, 2019 = Annual payment x PVIAF (8%, 10 years) = P100,000 x…

Q: Charm Company estimates its annual warranty expense as 2% of annual net sales. The following data…

A: Solution: Warranty expense for 2019 = Net Sales * 2% Net sales - P3,200,000 Warranty expense for…

Q: The business receives a promissory note of P50,000, carrying an interest rate of P10%. The note is…

A: Accrued income is that income which are earned by the business but the amount is yet to be received…

Q: On December 1, 2018, Davenport Company sold merchandise to a customer for $20,000. In payment for…

A: Compute the interest income for 2018.

Q: December 11, 2019, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign…

A: Journal is the book of original entry in which all the financial transactions of the business are…

Q: t Chocolate Company had a 12% note receivable dated June 30, 2020 in the original amount of…

A: The interest expenses are to be shown on the in balance sheet each year.

Q: Zenephia Corp. accepted a nine-month note receivable from a customer on October 1, 2022. If Zenephia…

A: As per Revenue Recognition principle, revenue is recognized when the goods are sold or services are…

Q: The Pita Pit borrowed $197,000 on November 1, 2021, and signed a six-month note bearing interest at…

A: Notes payable is the amount that is being borrowed and will have to be paid to another person.…

Q: Arvan Patel is a customer of Bank's Hardware Store. For Mr. Patel's latest purchase on January 1,…

A: Annual Interest revenue = $490,000*11% Annual Interest revenue = $53,900

Q: Philip Company has a P200,000, 9%, 120-day note receivable outstanding on December 31. The note is…

A: Here in this question, we are required to pass journal entry for the interest accrual. When any…

Q: Canton Cave Company provided the following schedule of liabilities on December 31, 2019: Accounts…

A: SOLUTION-   NOTE- 11% NOTE-BANK WOULD BE TREATED AS A LONG TERM LIABILITY AS IT HAS BEEN NEGOTIATED…

Q: Suppose, on September1, 2019 Fido Corporation borrows $30,000 from its bank for a period of 8 months…

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

Q: Villa company estimates its annual warranty expense at 8% of net sales.  The following data relate…

A: Total warranty expenses = warranty liability balance after adjustment + debit warranty liability…

Q: South Company borrows $88,500 on September1, 2019, from State Bank by signing an $88,500, 12%,…

A: The accrued interest is the interest due for payment but not paid yet.

Q: On September 15, 2018, Oliver's Mortuary received a $7,200, nine-month note bearing interest at an…

A: Note Receivable is the amount receivable on account of note received from customer.

Q: On June 18, 2020, Woods Co. received from one of its customers, Webb Co., a 90 day, 11%, $6,000 note…

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

Q: On January 1, 2019, Brooks, Inc. borrows $90,000 from a bank and signs a 5% installment note…

A: Interest accrued on 12/31 = Amount borrowed x rate of interest x year = $90,000 x 5% x 1 years =…

Q: A gift shop signs a three-month note payable on May 1/2020 of OMR 36,000 with an annual interest of…

A: Notes payable may be defined as a liability which occurs when credit sale has been done, and the…

Q: At December 31, 2021, Sheridan Company had a five-month, 5%, $79,200 note receivable that was issued…

A: Adjusting Journal Entry While preparing adjusting journal entry which brings more fairness in the…

Q: Arvan Patel is a customer of Bank's Hardware Store. For Mr. Patel's latest purchase on January 1,…

A: Journal entry is a process of recording the business transactions in the books of accounts for the…