S9-10 Accounting for a note receivable On June 6, Lakeland Bank & Trust lent $80,000 to Stephan Stow on a 30-day, 9% note. Requirements 1. Journalize for Lakeland the lending of the money on June 6. 2. Journalize the collection of the principal and interest at maturity. Specify the date. Round to the nearest dollar.
Q: Accounting for a note receivable On June 6, Lakeland Bank & Trust lent $80,000 to Stephan Stow…
A: Interest on note receivable = Note receivable x rate of interest x days/365 = $80,000*9%*30/365 =…
Q: On August 31, 20X6, Kathy Thompson borrowed 53.000 from Danein Interstate Bank. Thompson signed a…
A: Note receivable means where bank has given loan to borrower with specified term regarding time of…
Q: On October 1, 2011, Coast Financial loaned Barr Corporation$300,000, receiving in exchange a…
A: Maturity date of Notes = October 1, 2011 + 9 months = July 1, 2012 No. of Months from January 1,…
Q: Dab Company provides 1,200,000 of its account receivables to investment bank for notes 600,000 on…
A: The account receivables of a company are referred to as the amount that a company has to receive…
Q: Dynatech Supply Corp. has the following selected transactions for notes receivable. Nov. 1 Lent…
A: Notes receivable: It is a written document by which the other person promises to pay a certain…
Q: E8-10 (Algo) Recording Notes Receivable Transactions, Including Accrual Adjustment for Interest (LO…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Taylor Bank lends Guarantee Company $115,531 on January 1. Guarantee Company signs a $115,531, 12%,…
A: Notes Payable means a promissory note in which one party agrees to pay the other party a certain…
Q: On March 1, 20x1, ABC assigned its P4,000,000 accounts receivable to XYZ Bank in exchange for a…
A: Factoring: Factoring is a type of business loan in which the business organization sells its…
Q: 5. On October 1, 2021, Gomez Inc. assigns $1,600,000 of its accounts receivable to Ottawa National…
A: Finance charge (Interest expense ) = $1,600,000×2% = $32,000
Q: Shown below are selected transactions of Gulf Corp. during the month of December 2011. Dec. 1…
A: General journal entries Date Particulars Dr.$ Cr.$ 1…
Q: The following data relate to notes receivable and interest for Owens Co., a financial services…
A:
Q: Adjusting Entries for Interest The following note transactions occurred during the first year for…
A: Adjusting entries are prepared at the end of the accounting period in order to ensure the accrual…
Q: For the current period, ABC Co. had the following transactions with DEF Co.: Jul 01 Sales on account…
A: When an amount is due from a debtor of the business, the company can opt for receipt of other…
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: Prefix Supply Company received a 60-day, 4% note for $46,000 dated July 12 from a customer on…
A: Journal: Recording of a business transaction in a chronological order.
Q: On April 1, Year 1, Halo Co. issued a $5,000 face value discount note to the Capri Bank. The note…
A: Amount of cash received = Face value of the Note - Discount amount where, Discount amount = Face…
Q: FDN Company signed a 90-day, 8% P150,000 note with the bank for cash borrowed. On maturity date, the…
A: The balance sheet represents the financial position of the business The note payable is recorded as…
Q: The following interest-bearing promissory note was discounted at a bank by the payee before…
A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…
Q: On Dec 15, Soul trading signed a $120,000, 7%, 120-day not payable with the bank. The note was…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: On April 1, 2014, Somers Company assigns $200,000 of its accounts receivable to Third National Bank…
A: Working note: Computation of finance charges: Finance charges=Accounts receivable assigned×Rate of…
Q: On October 1, Eli's Carpet Service borrows $300,000 from First National Bank on a 5-month $120,000,…
A: In an organization's accounting system, a journal entry is a record of a business transaction.…
Q: The following information is available about Friends Company: a) Friends Company borrowed cash from…
A: It is pertinent to note that for discounted note interest payment is made upfront on the date of…
Q: P8-33A Accounting for notes receivable, dishonored notes, and accrued interest revenue Consider the…
A: Notes Accounting: A document which contain a promise to pay a specific amount in future is said to…
Q: Anderson Co. issued a $57,329, 60-day, discounted note to National Bank. The discount rate is 9%. At…
A: A discounted amount is received by the borrower at the time of the issue of notes But at the time of…
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A: In case of a credit sale, the customer is given an option to make payment for the sale within a…
Q: On October 1, 2017 Chung. Inc. assigns $1,000,000 of its accounts receivable to Seneca National bank…
A: Assigning of account receivable to bank means right given to bank to collect amount from account…
Q: 15. On September 15, the company received a P180,000 6% 180-day note. This was discounted to the…
A:
Q: City Graphics has the following notes payable transactions. July 5 Issued a $3,500 note to Roma…
A: Journal entry is recording of the transactions of the business in the books of accounts of the…
Q: Sylvestor Systems borrows $110,000 cash on May 15 by signing a 60-day, 12%, $110,000 note. 1. On…
A: Interest on Notes = Face value of Notes x rate of interest x time = $110,000 x 12% x 60/360 = $2,200
Q: On June 30, 2002, Simon Company discounted a customer's $180,000, 6 month, 10 percent note…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: On January 1, 20x1, SUBDUE Co. borrowed 10%, P4,000,000 loan from CONQUER Bank. Principal is due on…
A: Bank service fees = Loan amount x 3% = 4000000 x 3% = 120,000
Q: On October 1, Eli's Carpet Service borrows $125,000 from First National Bank on a 3-month, $125,000,…
A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…
Q: On December 15, FDN Trading signed a P120,000, 4 percent, 120-day note payable with the bank. The…
A: Financial markets are venues where individuals and businesses may purchase and sell assets such as…
Q: On August 31, 2022, Prestige Co. discounted at a bank a customer's P1,200,000, 9-month, 10% note…
A: The discount of note receivable is a way to get money from bank against note receivable before due…
Q: The notes receivable account of Kilo, Inc. consisted of the following: 1. 60-day note of P10,000…
A: The note receivable is an asset for the business, which is due for payment from customers on future…
Q: Anderson Co. issued a $48,947, 60-day, discounted note to National Bank. The discount rate is 7%. At…
A: The question is related to bills discounting. The company has issued a $48947 , 60 days bill @ 7%.
Q: The following data relate to notes receivable and interest for CGH Cable Co., a cable manufacturer…
A: Note receivable:Note receivable refers to a written promise received by the creditor from the debtor…
Q: On September 1, QUEROL COMPANY assigns specific receivables totaling P750,000 to Davao Bank as…
A: The interest expense may be a non-operating expense shown on the operating statement. It’s primarily…
Q: On April 1, Year 1, Halo Co. issued a $5,000 face value discount note to the Capri Bank. The note…
A: Formula: Discount amount = face value amount x Discount rate
Q: On November 15, FDN Trading signed a P360,000, 12 percent, 180-day note payable with the bank. The…
A: Solution: Discount amount = P360,000 * 12%*180/360 = P21,600
Q: Question 1 For the current period, LAVADA Co. had the following transactions with SOAPEE Co. Jul 01…
A: A note is a financial instrument which provides a written promise to pay a certain amount at a…
Q: Wenzy Company discounted its own ₱250,000 one-year note at a bank, at a discount rate of 12% when…
A: Journal entry is defined as recording of the transactions of business into the books of entity and…
Q: Foremost Company received from a customer a one-year, P500,000 note bearing annual interest of 8%.…
A: Foremost company's Received note bearing annual interest of 8% = P500000 Maturity = 1 year Maturity…
Q: C company discounted its own 250,000 one year note at a bank, at a discount rate of 12% when the…
A: Company discounting its notes means, the company is presenting its notes receivable from the…
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- (Learning Objective 6: Apply GAAP for notes receivable) Record the followingnote receivable transactions in the journal of Windham Golf. How much interest revenue didWindham earn this year? Use a 365-day year for interest computations, and round interestamounts to the nearest dollar. Windham Golf has a December 31 fiscal year-end.1 Loaned $17,000 cash to Jill Wateman on a one-year, 8% note.6 Performed service for Fairway Pro, receiving a 90-day, 10% note for$14,000.16Company.31 Accrued interest revenue for the year.Received a $5,000, six-month, 5% note on account from Paulson(Learning Objective 6: Account for notes receivable)1. Compute the amount of interest during 2018, 2019, and 2020 for the following notereceivable: On May 31, 2018, Wyoming State Bank loaned $240,000 to Lindsey Weston ona two-year, 8% note.2. Which party has a/ana. note receivable?b. note payable?c. interest revenue?d. interest expense?3. How much in total would Wyoming State Bank collect if Lindsey Weston paid off the noteearly on November 30, 2018?P9-31A Accounting for notes receivable and accruing interest Learning Objective 4 1. Note 3 Dec. 18, 2016 Cathy Realty loaned money and received the following notes during 2016. Note Date Principal Amount Interest Rate Term (1) Jun. 1 $ 18,000 8% 1 year (2) Sep. 30 24,000 12% 6 months (3) Oct. 19 10,000 9% 60 days Requirements 1. Determine the maturity date and maturity value of each note. 2. Journalize the entries to establisheach Note Receivable and to record collection of principal and interest at maturity. Include a single adjusting entry on December 31, 2016, the fiscal year-end, to record accrued interest revenue on any applicable note. Explanations are not required.
- Learning Objective 6: Apply GAAP for notes receivable) Garrett Meals completedthe following selected transactions:2018Oct 31 Sold goods to Rose Foods, receiving a $32,000, three-month 5.5% note. (You dodo not need to make the cost of goods sold journal entry for this transaction.)Dec 31 Made an adjusting entry to accrue interest on the Rose Foods note.2017Jan 31 Collected the Rose Foods note.Nov 11 Loaned $15,800 to Franklin Shops, receiving a 90-day, 9.75% note.Dec 31 Accrued the interest on the Franklin Shops note.Requirements1. Record the transactions in Garrett Meals’ journal. Assume that no sales returns areexpected. Round all amounts to the nearest dollar. Explanations are not required.2. Show what Garrett Meals will report on its comparative classified balance sheet atDecember 31, 2019, and December 31, 2018, for Notes Receivable and Interest Receivable(Learning Objectives 4, 5: Account for accounts receivable and uncollectibleaccounts) Perform the following accounting for the receivables of Hawkins and Harris, a CPAfirm, at December 31, 2018.Requirements1. Set up T-accounts and start with the beginning balances for these T-accounts:■ Accounts Receivable, $104,000■ Allowance for Uncollectible Accounts, $12,000Post the following 2018 transactions to the T-accounts:a. Service revenue of $695,000, all on accountb. Collections on account, $720,000c. Write-offs of uncollectible accounts, $8,000d. Uncollectible-account expense (allowance method), $15,0002. What are the ending balances of Accounts Receivable and Allowance for UncollectibleAccounts?3. Show how Hawkins and Harris will report accounts receivable on its balance sheet atDecember 31, 2018.(Learning Objectives 4, 5: Account for accounts receivable and uncollectibleaccounts) Perform the following accounting for the receivables of Andrews and Johnson, a lawfirm, at December 31, 2018.Requirements1. Set up T-accounts and start with the beginning balances for these T-accounts:■ Accounts Receivable, $100,000■ Allowance for Uncollectible Accounts, $14,000Post the following 2018 transactions to the T-accounts:a. Service revenue of $697,000, all on accountb. Collections on account, $714,000c. Write-offs of uncollectible accounts, $8,000d. Uncollectible-account expense (allowance method), $11,0002. What are the ending balances of Accounts Receivable and Allowance for UncollectibleAccounts?3. Show how Andrews and Johnson will report accounts receivable on its balance sheet atDecember 31, 2018.
- (Learning Objective 5: Apply GAAP to uncollectible receivables) At December 31,2018, before any year-end adjustments, the Accounts Receivable balance of HamptonCompany, Inc., is $330,000. The Allowance for Uncollectible Accounts has a $15,400 creditbalance. Hampton prepares the following aging schedule for Accounts Receivable:Age of AccountsTotal Balance 1–30 Days 31–60 Days 61–90 Days Over 90 Days$330,000 $100,000 $70,000 $30,000Estimated uncollectible 0.6% 3.0% 5.0%$130,00040.0%Requirements1. Based on the aging of Accounts Receivable, is the unadjusted balance of the allowanceaccount adequate? Too high? Too low?2. Make the entry required by the aging schedule. Prepare a T-account for the allowance.3. Show how Hampton will report Accounts Receivable on its December 31 balance sheet.E-F:8-14 Defining common receivables terms (Learning Objective 1) Match the terms with their correct definition. Terms 1. Accounts receivable 2. Other receivables 3. Debtor 4. Notes receivable 5. Maturity date 6. Creditor Definitions a. The party to a credit transaction who takes on an obligation/payable. b. The party who receives a receivable and will collect cash in the future.. c. A written promise to pay a specified amount of money at a particular future date. d. The date when the note receivable is due. e. A miscellaneous category that includes any other type of receivable where there is a right to receive cash in the future. f. The right to receive cash in the future from customers for goods sold or for services performed.(Learning Objective 3: Record note payable transactions) Dean Sales Companycompleted the following note payable transactions:2018Jul Purchased delivery truck costing $58,000 by issuing aone-year, 4% note payable.Dec 31 Accrued interest on the note payable.2019Jul 1 Paid the note payable at maturity.1Requirements1. How much interest expense must be accrued at December 31, 2018? (Round your answerto the nearest whole dollar.)2. Determine the amount of Dean Sales’ final payment on July 1, 2019.3. How much interest expense will Dean Sales report for 2018 and for 2019? (If needed,round your answer to the nearest whole dollar.)
- (Learning Objective 5: Evaluate collectibility using the allowance for uncollectibleaccounts) At the end of the current year (before adjusting entries), Autumn Corporation hada balance of $76,000 in Accounts Receivable and a credit balance of $11,000 in Allowance forUncollectible Accounts. Service revenue (all on credit) for the year totaled $490,000.RequirementsConsider each of the following two independent situations.1. Using the percent-of-sales method, calculate the amount of Uncollectible-Account Expenseif Autumn Corporation estimates its uncollectible-account expense using a rate of 2% ofcredit sales. What is the ending balance of the Allowance for Uncollectible-Accounts underthis scenario?2. Now assume that Autumn Corporation uses the aging-of-receivables method. AutumnCorporation estimates that its Allowance for Uncollectible Accounts should have a creditbalance of $21,000. Calculate the amount of its Uncollectible-Account Expense. What isthe ending balance of the Allowance for…Learning Objective 6: Apply GAAP for notes receivable) Markley Foodscompleted the following selected transactions.2018Oct 31 Sold goods to Basic Foods, receiving a $30,000, three-month, 5.25% note. (Youdo not need to make the cost of goods sold journal entry for this transaction.)Dec 31 Made an adjusting entry to accrue interest on the Basic Foods note.2019Jan 31 Collected the Basic Foods note.Nov 11 Loaned $15,800 cash to Straord Shops, receiving a 90-day, 10.0% note.Dec 31 Accrued the interest on the Straord Shops note.Requirements1. Record the transactions in Markley Foods’ journal. Assume that no sales returns areexpected. Round all amounts to the nearest dollar. Explanations are not required.2. Show what Markley Foods will report on its comparative classified balance sheet atDecember 31, 2019, and December 31, 2018, for Notes Receivable and Interest Receivable.(Learning Objective 5: Apply GAAP for uncollectible receivables) AtDecember 31, 2018, Concord Travel Agency has an Accounts Receivable balance of $87,000.Allowance for Uncollectible Accounts has a credit balance of $880 before the year-end adjustment. Service revenue (all on account) for 2018 was $800,000. Concord estimates that itsuncollectible-account expense for the year is 3% of service revenue. Make the year-end entryto record uncollectible-account expense. Show how Accounts Receivable and Allowance forUncollectible Accounts are reported on the balance sheet at December 31, 2018