Sunland Company lends Monty industries $49200 on August 1, 2022, accepting a 9-month, 9% interest note. If Sunland Company accrued interest at its December 31, 2022 year-end, what entry must it make to record the collection of the note and interest at its maturity date?

Sunland Company lends Monty industries $49200 on August 1, 2022, accepting a 9-month, 9% interest note. If Sunland Company accrued interest at its December 31, 2022 year-end, what entry must it make to record the collection of the note and interest at its maturity date?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

See similar textbooks

Related questions

Q: On January 1, 2020, MP's customer issued a 3 year 8% note, PHP 3,000,000 for services billed to be…

A: Carrying amount is also known as carrying value or book value. The carrying amount of a note issued…

Q: Blue Spruce Corp. lends Dobson industries $ 60000 on August 1, 2017, accepting a 9-month, 6%…

A: Interest receivable on December 31, 2017 = 60,000 x 6/100 x 5/12 = $1,500 Interest revenue from…

Q: 1. Costco Wholesale Corporation borrows $640,000 on September 1, 2021. Costco signs a nine- month,…

A: Formula: Interest amount = Notes payable amount x Time period x Interest rate.

Q: On June 8, Alton Co. issued an $77,100, 7%, 120-day note payable to Seller Co. Assume that the…

A: Interest: An interest is the cost of the funds loaned to the business by any lender.

Q: On January 1, 2020, Sunland Company, a calendar-year company, issued $897000 of notes payable, of…

A: Solution: Current liability = Amount due in next 1 year = 224,250 Long term Debt = Due after 1 year…

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: Erza Company has a P180,000, 10%, 90-day note receivable outstanding at December 31. The note is…

A: Interest receivable is interest accrued but not received. Interest receivable is an asset. Increase…

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: On July 1, 2018, Ross-Livermore Industries issued nine-month notes in the amount of $400 million.…

Q: On March 1, 2017, Fun Company borrowed 1, 000,000 and signed a 2-year note bearing interest at 12%…

A: Formula: Interest amount = Principal amount x Interest rate x Time period.

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: Prepare journal entry for Windsor, Inc. to record the receipt of the proceeds of the note. Prepare…

A: Solution:- Given, Windsor, Inc. borrows $67,200 from Wildhorse Co. Signing a 4%, one-year note…

Q: What amount should Jeba report as a liability for accrued interest at December 31, 2022?

A: The accrued liability would be calculated from 01st April 2021 to December 31, 2022. The accrued…

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: Justin Company signed a $90,000, three-month, 9% note payable, on December 1. If the accounting…

A: Interest accrued on December 31= Face value of bonds x rate of interest x no. of month/12 = $90000 x…

Q: On December 31, 2019, Carrboro Textile Company hard short-term debt in the form of notes payable…

A: Here, the company has refinanced the short term debt by entering into an agreement with worldwide…

Q: On April 1, 2019, Char Company borrowed P5,000,000 and signed a 2-year note bearing interest at 12%…

A: Interest accrued for April 1, 2019 to March 31, 2020 = Amount borrowed x rate of interest x no. of…

Q: On May 1, 2020, Zachary Corporation borrowed $2,500 on a two-year, 6% note payable. Interest is due…

A: The company borrowed amount on the dated May 1, 2020. Interest will be payable after six months.…

Q: what total amount should be reported as current liabilities?

A: Given information is: Eliot Company reported the following liabilities on December 31, 2020:…

Q: On January 1, 2020, MP's customer issued a 3 year 8% note, PHP 3,000,000 for services billed to be…

A: Carrying amount: It is the original cost of the asset that is reflected or shown in the balance…

Q: On January 1, 2020, Avery Co. borrowed and received $400,000 from a major customer evidenced by a…

A: Step 1: a. Compute the discount on notes payable as follows:

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: 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 January 1, 2020, Concord Company purchased at face value, a $1060, 10% bond that pays interest on…

A: The interest earned during period but not received during period is recorded as interest receivable.…

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, 2020, Crane Company purchased at face value, a $1110, 10% bond that pays interest on…

A: Bonds are instruments acknowledging the debt due from one person to another person to be paid on…

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: 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 May 31, Baker Co. issued an $35,679, 8%, 120-day note payable to Samunck Co. Assume Baker's…

A: Solution a: Interest EXPENSE recognized by Baker in the current fiscal year = $35,679*8%*30/360 =…

Q: Windsor, Inc. lends Flint industries $43200 on August 1, 2022, accepting a 9-month, 6% interest…

A: The note receivable is prepared for the amount due from the debtors.

Q: Sayed Company borrowed $40,000 on August 31, 2020, by issuing an 9-month, 9% interest-bearing note.…

A: Given, Interest rate = 9% Issuing Date = 31st August 2020 Borrowing Amount = $40,000

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: 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: 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: 7) In On December 31, 2020, an adjusting entry was made to accrue interest for a P60,000, 120-day,…

A: Formula for interest calculation : Interest amount = Principal X Rate of interest X Number of days…

Q: On June 1, Davis Inc. issued an $64,900, 7%, 120-day note payable to Garcia Company Assume that the…

A: Interest to be received is calculated by multiplying the principal with rate of interest and time .…

Q: Vaughn Manufacturing lends Pina Colada industries $51600 on August 1, 2022, accepting a 9-month, 12%…

A: Note Interest means, with respect to any Investor at any time, the undivided interest in the Note…

Q: A company borrowed P100,000 on September 30, 2019 by signing a six-month note that specifies…

A: The notes payable is a contract which specifies a payment to be made after a specified period along…

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: Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of…

A: Working note: Computation of annual installment payments:

Q: On April 1, 2021, MNO Company borrowed $15,000 on an 8% note payable. The maturity date of the note…

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

Q: BGC Inc. acquired machine on January 1, 2020 by issuing a non interest bearing note, 4 year,…

A: Here in this question we are required to calculate the carrying amount of note that should be…

Q: On January 1, 2021. This Company acquired a machine by issuing a 3-year, 3%, P4,000,000 note…

A: As per IFRS 9, a Financial instrument, the financial liability is initially recognized at amortized…

Q: Pam Company borrowed $75,000 on June 1, 2020, by issuing an 11-month, 8% interest-bearing note. The…

A: The note was issued for 11 month on June 1,2020.

Q: On January 1, 2021, Glanville Company sold goods to Otter Corporation. Otter signed an installment…

A: Sales revenue: The amount earned by selling goods or services is known as sales revenue. This is the…

Q: On September 12, 2021, an entity received a 120-day, 9% note for P50,000 for an overdue account from…

A: Total interest on the note = face value of the note x rate of interest x no. of days/360 =…

Q: On April 1, 2020, MMM company issues a $105,000, three -month, zero-interest-bearing note to Al-Ahli…

A: A journal entry is done to record the transaction that took place in the books of accounts.

Q: On January 1, 2019, James Co. received a 10%, five year note from a customer. Interest is paid every…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

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, 2019
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?
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.)
Spath 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.)
On 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. 6,000
Disclosure of Debt On May 1, 2019, Ramden Company issues 13% bonds with a face value of 2 million. The bond contract calls for retirement of the bonds in periodic installments of 200,000, starting on May 1, 2020, and continuing on each May 1 thereafter until all bonds are retired. Required: How would the preceding information appear in Ramdens balance sheets on December 31, 2019, and 2020?
Interest-Bearing and Non-Interest-Bearing Notes On December 11, 2019, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign a 12,000,60-day note. Required: Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2019, and the customers repayment on February 9, 2020, assuming: 1. Interest of 12% was in addition to the face value of the note. 2. The note was issued as a 12,000 non-interest-bearing note with a present value of 11,765. The implicit interest rate on the note receivable was 12%. Assume a 360-day year. (Round to the nearest dollar.)
Arvan 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.
On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment. Neither the fair value of the note nor the equipment is determinable. Boaters incremental borrowing rate is 9%. The asset has a useful life of 7 years. Prepare the journal entry for Boater to record the issuance of the note on January 1.
On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major customer in exchange for used equipment. The equipment had originally cost Park 200,000 and had a book value of 20,000 on the date of the sale. At the 12% imputed interest rate for this type of loan, the present value of the note is 25,500 on January 1, 2019. Park uses the effective interest rate. What is the carrying value of the note receivable on Parks December 31, 2019, balance sheet? a. 28,560 b. 29,000 c. 32,500 d. 36,000