Q: On October 1, 2021, FDN Company paid an insurance premium covering the period from October 1, 2021…
A: Adjusting entries are prepared at the end of the accounting year to ensure the accrual base…
Q: What amount must be remitted if invoices dated June 28 for $815, July 7 for $780 and July 14 for…
A: solution : given Invoice dated Amount June 28 $815 July 7 $780 July 14 $895…
Q: For each of the following items, write first the journal entry and then, the adjusting entry if any,…
A: Theory introduction: All the business transactions are shown in Journal books. Journals also called…
Q: 6. If as of December 31, 2021 the rent of P10,000 for the month of December had not been recorded or…
A: Increase in expense should be debited. Increase in liabilitie should be credited.
Q: Under ABC Company’s accounting system, all insurance premiums paid are charged to insurance expense.…
A: Answer Prepaid insurance expenses in beginning of year is considered expenses on Accrual basis in…
Q: What is the effect on XYZ's accounting equation in June when it remitted the $10,000?
A: Solution:- Preparation of the Effect on XYZ accounting equation, when it remitted $10,000 Cash…
Q: Indicate whether each of the following assets and liabilities typically should be classified as…
A: Current assets - Assets which are convertible into cash within a period of one year. Long-term…
Q: Presented below are the data on three promissory notes. Determine the missing amounts (round answers…
A: WN 1. Maturity date calculation For 1st Promissory note = April 1 + 60 days = May 31. For 2nd…
Q: As part of its accounting process, estimated incon ed each month for 28% of the current month's net…
A: Companies estimates the uncertain amount for the benefits of employees like pension, vacation pay,…
Q: A credit sale of $3.,500 is made on July 15, terms 2/10, n/30, on which a return of $200 is granted…
A: Formula: Net sales = Sales - sales returns and allowances
Q: A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of interest is…
A: Ordinary interest = Principle * Interest rate * Number of days of loan taken / 360 days in a year
Q: On September 30, Year 1, Royal Flush Pluming, Inc., issued a $10,000, 6%, 5-month note. For the year…
A: Interest Expense: An interest expense is the expense which is incurred by a company, business or…
Q: JenStar received an invoice of $7,645 dated September 10 with terms 2/10, n15. JenStar paid $2.500…
A: Data given:: Invoice amount= $7,645 Date of invoice = September 10 Terms: 2/10, n/15 Payment date…
Q: Use the information for the next two (2) questions. Bold Company estimated annual warranty expense…
A: Introduction: Warranty liability means repairing the products which was sold earlier. Warranty…
Q: Presented below are the data on three promissory notes. Determine the missing amounts (round answers…
A: Maturity Date = Date of Note + Terms
Q: principal 12,000, interest 9%, date borrowed April 5, date repaid April 9, what is the number of…
A: Principal = 12000 Interest rate = 9% Period from April 5 to April 9 = 4 Days
Q: Choose the correct. On March 15, Calloway, Inc., paid property taxes of $480,000 for the calendar…
A: Income statement shows the financial statement which reports the financial performance of the…
Q: What amount must be remitted if invoices dated June 28 for $815, July 7 for $780 and July 14 for…
A: Here in this question, we are required to calculate discount. It is based on the concept of EOM…
Q: A one year insurance premium of $4,400 was paid on October 1, 2021 by the Cool Company, for coverage…
A: Insurance expense for the 2021 = total insurance premium paid x no. of month for 2021 / total…
Q: For each of the following items, write first the journal entry and then, the adjusting entry if any,…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Each and every…
Q: What is the reportable June 2020 expenses? Received electricity bill for P10,000 for use of…
A: As per matching principle, income and expenses for a particular period should be recorded in that…
Q: On 9/1, the Knight's Stop issues a new the previous year. The new part was is: On 9/1, Knight's Stop…
A: Warranty are provided to customers and warranty are laibilties of customers to company for warranty…
Q: At the adjustments: end of the month, you are also required to take into consideration the following…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: The company received a bill for December’s utilities on January 5. The bill was for $235. So at…
A: Adjusting entries:Adjusting entries are made at the end of each accounting period, to record the…
Q: The company's average collection period for 2021 is (Round answers to O decimal places. Use 365 days…
A: Introduction:- Calculation of Accounts receivable turnover ratio as follows under:- Accounts…
Q: The insurance expense account has a balance of P108,000 before adjustment. This amount represents…
A: In this case, the journal entry to record the prepaid insurance includes a debit to the prepaid…
Q: On October 1, 2021, FDN Company paid an insurance premium covering the period from October 1, 2021…
A: Prepaid insurance : In some cases, the benefit of amount already spent and also paid relates to next…
Q: The accrued interest on December 31 is S
A: Accrued Interest is the accumulated interest over the outstanding amount during the period. It is…
Q: On October 1, 2020 the company borrows $20,000 from a local bank and signs a note. Principal and…
A:
Q: what is the prepayment in the accounts for the year to 31 December 20X8?
A: As per matching concept revenues and expense that are incurred to generate revenue need to be…
Q: An invoice dated March 28 for $4,435.56 has terms 1-/15, n/45. A payment was made on April 11 which…
A: Credit terms is the time period indicating when the payment for the credit purchase will be due to…
Q: ve in your account today ompounded annually. Calculate the amou and th 5860
A: Given information :
Q: 1. If at the end of the year, the Estimated Uncollectible Account is to be provided at 3% of its…
A: “Since you have posted a many question with multiple sub-parts, we will solve first question with…
Q: The rent expense account in 2020 has debit balance of P74,400 composed of the following: (1) January…
A: Working notes : (1) Rent expenses for the period January 2020 to April 2020 = P16800 (2) Rent…
Q: On November 1, Senorita Blankets sold goods for P12,000 and accepted a six-month non-interest…
A: Present value of Notes = non-interest-bearing note x Present value factor at (5%, 1 period) = P12000…
Q: What is the balance of accounts payable at May 31st?
A: Accounts payable balance should be as per terms of cash payment.
Q: What is the warranty expense for the current year? What is the warranty liability at the beginning…
A: A warranty liability is the amount that the company will have to spend to repair or replace its…
Q: On January 7, 2018, $4000 was deposited into an account which earns 5% annually. Assuming simple…
A: Simple interest is the type of interest that is calculated on the original amount invested and not…
Q: On December 1, a company borrowed Php 100,000.00 at 12% per year. The interest will be paid…
A: Although the first interest payment will happen in the next fiscal year, the company will have to…
Q: At 31 March 20X7, accrued rent payable was £300. During the year to 31 March 20X8, £4,000 cash was…
A: Accrued expenses are those expenses which are incurred in particular accounting period, but payment…
Q: The annual insurance premium for S for the period 1 July 20X3 to 30 June 20X4 was $13,200, which is…
A: statement of profit or loss: All expenses and revenues of particular period are recorded in…
Q: On December 31, 2021, the Home Office Account on HIJ Branch has a balance of P52,800. Compute the…
A: Investment is the amount which is spent by the producer for the purchase of those goods which…
plzz explain it
Step by step
Solved in 2 steps with 2 images
- Mohammed LLC is a growing consulting firm. The following transactions take place during the current year. A. On June 10, Mohammed borrows $270,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in four months from June 10, and annual interest rate of 5%. B. On July 9, Mohammed borrows an additional $100,000 with payment due in four months from July 9, and an annual interest rate of 12%. C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed.Interest Receivable On June 1, 2016, MicroTel Enterprises lends $60,000 to MaxiDriver Inc. The loan will be repaid in 60 days with interest at 10%. Required Prepare the journal entry on MicroTels books on June 1, 2016. Prepare the adjusting entry on MicroTels books on June 30, 2016. Prepare the entry on MicroTels books on July 31, 2016, when MaxiDriver repays the principal and interest.Everglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of the loan include a repayment of principal in eight, equal installments, paid annually from the April 1 date. The annual interest rate on the loan is 5%, recognized on December 31. (Round answers to the nearest cent, if needed.) A. Compute the interest recognized as of December 31 in year 1. B. Compute the principal due in year 1.
- 2. Milo Corporation has a line of credit with a bank for $5,000,000 in June 30, 2018 payable on December 31, 2019. The company has no existing deposit with the bank. The bank requires the borrower a compensating balance of 5% and charges 15% for loans availed. a) How much should the company borrow to have a net proceeds of $5,000,000? b) What is the effective interest rate from this transaction if:b-1) interest rate is paid at the end of the term?b-2) interest is deducted in advance? SHOW YOUR SOLUTION PLEASE DONT USE MS EXCELMf3. : An entity took UAH 100,000 loan for 5 at 26% of annual interest rate. Interests are paid annually. A bank is using annuity due scheme. Interest revenue for a bank in period 1 is: An entity took UAH 100,000 loan for 5 at 26% of annual interest rate. Interests are paid annually. A bank is using annuity due scheme. Principal, paid in the fourth period, is: Outstanding loan amount is USD 17,000.00. Annuity is USD 4,315.27, interest rate is 18%. The amount of principal, paid in the given period is: Outstanding loan amount is USD 22,000.00. Annual interest rate is 11%. Interest is paid at the end of each year. In the given period bank received USD 4,300.00 of principal payment. The annuity amount is:1. Coco Guitar Company (CGC) borrowed P160,000 from the bank signing a 9%, 3-month note on September 1, 2015. Principal and interest are payable to the bank on December 1. CGC prepares monthly financial statements. At what amount should the Interest Expense be presented in the September 2015 income statement of CGC?
- 14. A company obtained a short-term loan of P250,000 an at annual interest rate of 6%. As a condition of the loan, the company is required maintain a compensating balance of P50,000 in a checking account. The company's checking account earns interest at an annual rate of 2%. Ordinarily the company maintains balance of P25,000 in its checking account for transaction purposes. What is the effective interest rate of the loan?H6. On July1, ABC Company borrows $100,000 cash from the First Bank. The terms of the loan are, principal plus interest is due in 3 months. The interest rate is 6% annually. The journal entry to record the loan would include: A.) A credit of $100,000 to Note Payable B.) A credit of $106,000 to Notes Payable C.) A debit to Notes payable of $100,000 D.) A credit to cash of $100,000Norbert Corporation borrowed $24,000 on December 1, 2011, by issuing a two-month, 8 percentnote payable to Service One Credit Union. The entire amount of the loan, plus interest, is dueFebruary 1, 2012.a. Prepare the necessary adjusting entry for interest expense on December 31, 2011.b. Record the repayment of the loan plus interest on February 1, 2012.
- Q3 Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $16,000 not due for three years. The interest rate on the note is 6%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What amount did Canliss borrow? (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Step 1: Calculate the PV of the Ordinary Annuity Component: Payment: ? n = ? i = ? Present Value: ? Step 2: Convert the Annuity to a Single Sum: Payment: ? n = ? i = ? Present Value: ?Week 1 Date Transaction description 1 Issued Check No. 652 for $8,300 to pay ZNG Property Group for two month's worth of rent in advance. 1 Obtained a loan of $41,000 from BitiBank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2016 and the principal of the loan is to be repaid on June 1, 2021. 3 Paid the full amount owing to Addax Sports, Check No. 653. 3 Mick's Sporting Goods paid the full amount owing on their account. 3 Made payment of $829 to Enroff for 3 months of electricity up to and including May 31, Check No. 654. 4 Paid sales staff wages of $1,535 for the week up to and including yesterday, Check No. 655. Note that $1,196 of this payment relates to the wages expense incurred during the last week of May. 5 Issued Check No. 656 to Office Supplies Warehouse for the purchase of $338 worth of office supplies. Prepare the sales journal, purchases journal, cash receipts journal, cash payment journal, and general…D&R A3 3 - 3 Today is June 1. Sustainable Corporation has an obligation of $25 million coming due on August 1. The company is planning to borrow this amount on August 1 to fulfill its obligation, and plans to pay back the loan on December 1. The company’s borrowing rate is LIBOR + 125 basis points. The company’s bank presents it with the following LIBOR term structure: # days LIBOR 30 0.90% 60 1.00% 90 1.05% 120 1.10% 150 1.15% 180 1.18% 210 1.20% 240 1.21% For the calculation of interest, the bank assumes 30 days in a month, and 360 days in a year. July 1 is the end of the company’s third quarter of operations, and the company must estimate the fair value of all its contracts, including derivatives, for its quarterly financial statements. LIBOR term structure on July 1: # days LIBOR 30 0.90% + 0.50% 60 1.00% + 0.50% 90 1.05% + 0.50% 120 1.10% + 0.55% 150 1.15% + 0.55% 180 1.18% +…
