Philip Company has a P200,000, 9%, 120-day note receivable outstanding on December 31. The note is dated November 1, 2021. What is the adjusting entry on December 31, 2021?
Q: On December 31, 2021, Party Company received two P 50,000 notes receivable from customers in…
A: Receivables are collected from the persons who owe to the business. A note is carrying on an…
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: Starr Corporation loaned P90,000 to another corporation on December 1, 2021 and received a 3-month,…
A: Calculation of accrued interest till December 31, 2021: Interest Receivable/Interest Revenue = Face…
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: Fame Company has an 8% note receivable dated June 30, 2019 in the original amount of P 1,500,000.…
A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…
Q: On November 1, Alan Company signed a 120-day, 12% note payable, with a face value of $10,800. What…
A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…
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: Siomai Company estimates its annual warranty expense as 2% of annual net sales. The following data…
A: 1. Warranty Expense = 2% of Net sales Net sales = 3,200,000 Warranty expense = 3,200,000 x 2% =…
Q: On December 1, 2020, Shaw Company accepted from Bogner a $10,000, 3-month, 8% note in lieu of an…
A: Journal entries are used by the management to record the transactions in the books of accounts.…
Q: Wildhorse Co. issued a five-year interest-bearing note payable for $324000 on January 1, 2019. Each…
A: Balance sheet is the financial statement which involves the total debt, liabilities, assets and…
Q: A 180-day promissory note was issued by FDNACCT Co. on November 1, 2021 in exchange of goods bought…
A: Interest income is the amount of money received as an interest either from an investment, bonds, or…
Q: On January 1, 2019, Heritage Company has a note payable to bank in the amount P2,800,000.…
A: Discount on note Payable: If Coupon rate is less than the prevailing market interest rate, bonds are…
Q: On January 1, 2021, IYY Inc. issued a 5,000,000 non-interest bearing note with maturity date of…
A: Issuing the financial instruments will increase the capital as well as the capital of the company.…
Q: On November 1, 2021, New Morning Bakery signed a $194,000, 6%, six-month note payable with the…
A: The amount of cash payable at maturity can be calculated as sum of note face value and interest due
Q: FDNACCT Co. purchased merchandise and issued a twelve-month promissory note with 8% interest and…
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
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: FDN Company received a 60-day 10% promissory note as settlement for goods sold on March 1, 2022 for…
A: The amount to be received at the time of the maturity of the promissory note include the principal…
Q: You company provided the following information on Dec. 31, 2019: Accounts Payable Bank note payable…
A: Current Liabilities are those liabilities which are due and payable within one year. Out of the…
Q: On January 1, 2019, ABC Company sold an equipment with carrying amount of P1,500,000. The customer…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: On December 31, 2019, Carboro Textile Company had shortterm debe in the form of notes payable…
A: Balance sheet shows the financial position of the company.
Q: Siomai Company estimates its annual warranty expense as 2% of annual net sales. The following data…
A: Warranty expense during the year = Net sales x estimated % of warranty expense
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: Sammy Company, a calendar-year company, has a 6% note receivable dated November 1, 2020 in the…
A: Answer) In the given question, the company had note receivable of P 3,000,000 on November 1, 2020…
Q: On January 1. 2020, Sheridan Company, a calendar-year company, issued S608000 of notes payable, of…
A: A current liability is an obligation which needs to be settled within a period of 12 months and any…
Q: On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P1,500,000 and…
A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…
Q: ABC Company received a ten-month, $18,000, 4% note from XYZ Corporation on April 1, 2020 to replace…
A: First understand the Journal Entry on Dec 31, 2020 Date General Journal Debit Credit Dec 31…
Q: At the end of 2021, Worthy Co.’s balance for Accounts Receivable is $20,000, while the company’s…
A: Given information is: At the end of 2021, Worthy Co.’s balance for Accounts Receivable is $20,000,…
Q: ABC Company received a ten-month, $18,000, 4% note from XYZ Corporation on April 1, 2020 to replace…
A: Formula: Interest amount = Principal amount xx interest rate Multiplying principal amount with…
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: Sunland Company lends Monty industries $49200 on August 1, 2022, accepting a 9-month, 9% interest…
A: Note Receivable: Note receivable is an instrument gives the holder right to receive the amount…
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 April 23, 2021, Bong Company received from a customer on an overdue account a 90-day, 8%,…
A: Maturity value of the note = Face value of note + interest = P500000 + (500000*8%*90/360) = P500,000…
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: On August 15, 2022, Pharoah Company signs a $248000, 7%, twelve-month note payable. Which of the…
A: Accrued Interest: The unpaid interest amount that has incurred on the financial obligation till a…
Q: On October 1, 2021, Smash Company discounted its own note of P500,000 at 10% for 1 year. In its…
A: When a business makes discounting of its own note, then Notes payable will become a liability for…
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: On April 23, 2021, Bong Company received from a customer on an overdue account a 90-day, 8%,…
A: Maturity value of the note = Face value of note + interest = P500000 + (500000*8%*90/360) = P500,000…
Q: ABC Company issued a promissory note with the following terms: Principal: P100,000 Date of note:…
A: Lets understand the basics. At the year end, adjustment entry is required to pass to record correct…
Q: Isko Company, a calendar-year company, has a 6% note receivable dated November 1, 2020 in the…
A: The company had note receivable of P 3,000,000 on November 1, 2020 Out of which P 1,000,000 is…
Q: On September 1, 2020, Sunland Company issued a note payable to Fidelity Bank in the amount of…
A: Principal outstanding on December 31, 2021 = Total amount of Notes payable - Instalment payment…
Q: Pharoah Ltd. borrowed ¥63,600,000 on November 1, 2021, by signing a ¥65,031,000, 3-month, zero-…
A: Formula: Discount on bond = Face value of bond - borrowed amount
Q: n December 31, 2021, Park Company sold used equipment with carrying amount of 2,000,000 in exchange…
A: Solution Given Annual payment 500000 Number of years 10 years Note issue date…
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: The company issued a ₱66,501 10% 120-day Notes Payable on September 30, 2020. The adjusting entry…
A: Given information: Principle = 66,501 Rate of interest = 10% Period of note = 120 days
Q: On January 1, 2019, a company acquired transportation equipment by paying cash of P400,000 and…
A: calculation of installment value of note Payable= P 4000000 PV of payment= 4000000*3.037349 = P…
Q: Clancy Co. accepted a two-year noninterest-bearing note for $1,166,400 on January 1, 2020. The note…
A:
Q: On October 1, 2021, Oberley Corporation loans one of its employees $40,000 and accepts a 12-month,…
A: The books of accounts are maintained under the accrual basis of accounting where revenue and…
Philip Company has a P200,000, 9%, 120-day note receivable outstanding on December 31. The note is dated November 1, 2021. What is the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.Non-Interest-Bearing Notes Payable On November 16, 2019, Clear Glass Company borrowed 20,000 from First American Bank by issuing a 90-day, non-interest-bearing note. The bank discounted this note at 12% and remitted the difference to Clear Glass. Required: 1. Prepare the journal entries of Clear Glass to record the preceding information, the related calendar year-end adjusting entry, and payment of the note at maturity. 2. Show how the preceding items Would be reported on the December 31, 2019, balance sheet. 3. Next Level What is Clear Glass Companys effective interest rate?
- Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturityOn July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000Arvan Patel is a customer of Banks Hardware Store. For Mr. Patels latest purchase on January 1, 2018, Banks Hardware issues a note with a principal amount of $480,000, 13% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Banks Hardware Store for the following transactions. A. Note issuance B. Subsequent interest entry on December 31, 2018 C. Honored note entry at maturity on December 31, 2019.
- Anderson Air is a customer of Handler Cleaning Operations. For Anderson Airs latest purchase on January 1, 2018, Handler Cleaning Operations issues a note with a principal amount of $1,255,000, 6% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Handler Cleaning Operations for the following transactions. A. Entry for note issuance B. Subsequent interest entry on December 31, 2018 C. Honored note entry at maturity on December 31, 2019Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts Receivable and the related Allowance for Doubtful Accounts were 1,200,000 and 60,000, respectively. An aging of accounts receivable indicated that 106,000 of the December 31, 2019, receivables may be uncollectible. The net realizable value of accounts receivable at December 31, 2019, was: a. 1,034,000 b. 1,094,000 c. 1,140,000 d. 1,154,000Rain T-Shirts issued a $440,600 note on January 1, 2018 to a customer, Larry Potts, in exchange for merchandise. The merchandise had a cost to Rain T-Shirts of $220,300. The terms of the note are 24-month maturity date on December 31, 2019 at a 4.5% annual interest rate. Larry Potts does not pay on his account and dishonors the note. Record journal entries for Rain T-Shirts for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
- Element Surfboards issued a $210,800 note on January 1, 2018 to a customer, Leona Marland, in exchange for merchandise. Terms of the note are 9-month maturity date on October 1, 2018 at a 10.2% annual interest rate. Leona Marland does not pay on her account and dishonors the note. On December 2, 2018, Element Surfboards decides to sell the dishonored note to a collection agency for 30% of its value. Record the journal entries for Element Surfboards for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on October 1, 2018 C. Receivable sale on December 2, 2018Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spaths incremental borrowing rate is 12%. The customer agrees to purchase an equal amount of inventory each year over the 5-year period so that a straight-line method of revenue recognition is appropriate. Required: Prepare the journal entries on Spaths books for 2019 and 2020. (Round answers to 2 decimal places.)Dallas Company loaned to Ewing Company on December 1, 2019. Ewing will pay Dallas $720 of interest ($60 per month) on November 30, 2020. Dallass adjusting entry at December 31, 2019, is: a. Interest Expense ........... 60 c. Interest Receivable ....... 60 Cash ......................... 60 Interest Income ........ 60 b. Cash ............................ 60 d. No adjusting entry is required. Interest Income ........ 60