Taylor Bank lends Guarantee Company $98,618 on January 1. Guarantee Company signs a $98,618, 12%, nine-month note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is Oa. Cash 98,618 Notes Payable 98,618 Ob. 8,876 Interest Expense Cash 89,742 Notes Payable 98,618 Oc. Cash 107,494 Interest Expense 8,876 Notes Payable 98,618 Od. Cash 111,932 Interest Expense 8,876 Notes Payable 98,618 Interest Payable 4,438

Taylor Bank lends Guarantee Company $98,618 on January 1. Guarantee Company signs a $98,618, 12%, nine-month note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is Oa. Cash 98,618 Notes Payable 98,618 Ob. 8,876 Interest Expense Cash 89,742 Notes Payable 98,618 Oc. Cash 107,494 Interest Expense 8,876 Notes Payable 98,618 Od. Cash 111,932 Interest Expense 8,876 Notes Payable 98,618 Interest Payable 4,438

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter10: Liabilities: Current, Installment Notes, And Contingencies

Section: Chapter Questions

Problem 20E: Entries for installment note transactions On January 1, 20Y2, Hebron Company issued a 175,000,...

See similar textbooks

Similar questions

A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
Entries for installment note transactions On January 1, 20Y2, Hebron Company issued a 175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual payments of 43,830, beginning on December 31, 20Y2. Journalize the entries to record the following:
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
A business issued a $5,000, 60-day, 12% note to the hank. The amount due at maturity is: A. $4,900 B. $5,000 C. $5,100 D. $5,600