The company determines that the interest expense on a note payable for the period ending December 31 is $630. This amount is payable on January 1. Prepare the journal entries required on December 31 and January 1.

Q: On July 8, Jones Inc. issued an $66,900, 9%, 120-day note payable to Miller Company. Assume that the…

A: Interest Expense: The cost of debt which is incurred during a particular accounting period is called…

Q: Sunland Company borrows $47,600 on July 1 from the bank by signing a $47,600, 13%, one-year note…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: On Aug 1, ABC received a 60 day, 10% note for 12,000 from McAnn’s Auto in settlement of an existing…

A: Date   Accounts and Explanation   Debit   Credit   Aug. 1  Notes Receivable 12,000…

Q: Sheridan Company borrows $37,800 on July 1 from the bank by signing a $37,800, 8%, one-year note…

A: Sheridan Company has borrowed on July 1. Interest for 6 months is due as on 31st December. Interest…

Q: On July 9, Mifflin Company receives an $8,600, 90-day, 12% note from customer Payton Summers as…

A: Journal entry represents the entry where the financial transactions are recorded.

Q: On September 15, Berto Motor Service Center issued a 90-day, 18% note amounting to P10,000 for a…

A: Journal is the book of original entry in which all the transactions of the business are recorded…

Q: The company determines that the interest expense on a note payable for the period ending December 31…

A: Introduction: A journal entry is a record of a company's financial activities that is kept in its…

Q: Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9 from a customer on…

A: Note is a form of debt issued or taken by the company. Interest has to be paid or received on the…

Q: Require (a): Your business issued a 14%, $300,000, one-year, note payable on April 1, 20x1. Both the…

A: Solution Adjusting entry is a entry in a company's general ledger that occurs at the end of an…

Q: The company determines that the interest expense on a note payable for the period ending December 31…

A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…

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: A company purchased a certificate of deposit (a short-term investment that pays interest to the…

A:

Q: Journalize the adjusting entry for each of the following accrued expenses at the end of the current…

A: Adjusting entries recorded at the end of the period for any expense or income related to that period

Q: On July 8, Jones Inc. issued an $70,600, 8%, 120-day note payable to Miller Company. Assume that the…

A: Notes payable is a negotiable instrument where a borrower records a promise to pay a certain amount…

Q: On July 8, Jones Inc. issued an $71,300, 10%, 120-day note payable to Miller Company. Assume that…

A: Definition:   Accrued interest: Accrued interest is the outstanding interest expense in the…

Q: On July 8, Jones Inc. issued an $85,000, 8%, 120-day note payable to Miller Company. Assume that the…

A: From July 8 to July 31 = 23 days Interest expense has been accrued for 23 days for the note payable.…

Q: Suppose Alladin Travel, Inc., holds a note receivable as an investment. At the endof June, $100 of…

A: Given information is:  Suppose Alladin Travel, Inc., holds a note receivable as an investment. At…

Q: Lundquist Company received a 60-day, 7% note for $79,000, dated July 23, from a customer on account.…

A: Note receivable:  Note receivable refers to a written promise received by the creditor from the…

Q: Phoebe Corporation signed a six-month note payable on October 23, 2018. What accountsrelating to the…

A: When the notes payable is signed in the middle of the financial year, and interest is included, the…

Q: y 8, Jones Inc. issued an $79,100, 6%, 120-day note payable to Miller Company. Assume that the…

A: In the given situation, there is a note payable with 6% rate for 120 days. We need to find the…

Q: The company determines that the interest expense on a note payable for the period ending December 31…

A: Lets understand the basics. Journal entry is required to make to record an event and transaction…

Q: On July 8, Jones Inc. issued an $84,700, 11%, 120-day note payable to Miller Company. Assume that…

A: Annual Interest=Issue amount×Interest rate=$84,700×11%=$9,317

Q: On December 1, Daw Co. accepts a $10,000, 45-day, 6% note from a customer. (1) Prepare the year-end…

A: Accrued interest = Face value of notes x rate of interest x no. of days in calendar year/ 360 days…

Q: A company has a $5,000, 6%, 3-month note ceivable on its books that was issued May 1. ne amount of…

A: The note receivable is the current asset for the business. The Accrued interest is the interest that…

Q: Prepare journal entries without explanations for the following transactions involving notes payable…

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

Q: Sherman Charter signed a four-month note payable in the amount of $18,000 on September 1. The note…

A: Note: Adjusting entry on September 30 will be made to record the accrued interest for the period…

Q: On November 1, Bahama Crulse Lines borrows $2.1 millon and Issues a six-month, 9% note payable.…

A: From November 1 to December 31 = 2 months Interest is accrued for 2 months during the current…

Q: on january 1, prepaid insurance was debited for 1,896 related to the cost of a two-year premium,…

A: The following journal entry should be recorded when prepaid expense is purchased on January 1:

Q: Analyze each of the following transactions: (a) the copier's sale; (b) the adjustment to recognize…

A: Warranty expense are costs associated with repairing a defective product, replacement, or return.…

Q: A business issued a 45-day, 6% note for $210,000 to a creditor on account. Journalize the entries to…

A: a. Prepare journal entry to record the issuance of the note.

Q: on november 1, 2018, Downtown  Jewelers accepted a 3-month, 15% note for $6,000 in sttlement of an…

A: Accrued interest: Accrued interest is the outstanding interest expense in the accounting period, as…

Q: Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9, from a customer on…

A: Note receivable:Note receivable refers to a written promise received by the creditor from the debtor…

Q: Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Determine the…

A:

Q: The following selected transactions are from Garcia Company. Year 1 Dec. 16 Accepted a $20,400,…

A: General Journl Date General Journal Debit Credit Year 1       Dec 16 Note receivable - Rita…

Q: The company determines that the interest expense on a note payable for the period ending December 31…

A: Introduction Accrued Interest expense of note payable: Interest expense accrues every day from the…

Q: The following transactions are from Ohlm Company. (Use 360 days a year.)   Year 1 Dec.   16…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: What is the amount of interest revenue that must be accrued on December 31st for a nine-month, 6%,…

A: Note receivable $ 2000. Interest 6% Accapted on 1st November

Q: (b) assuming Ringo does not make reversing entries, prepare the journal entry to record the payment…

A: Journal Entries: These are the building blocks of accounting, which is the act of recording the…

Q: A business issued a 45-day, 4% note for $260,000 to a creditor on account. Journalize the entries to…

A: Notes payable: A note payable is a liability account. In this borroer promised to lender/issuer to…

Q: Prefix Supply Company received 120-day, 8% note for $450,000, dated April 9, from a customer on…

A: Note receivable refers to a negotiable instrument. It represents the claim amount due on the…

Q: On August 1, Vermillion Ltd. accepted a $27,800 note from Borges Ltd. in settlement of an account…

A: Interest accrued = Face value of notes  x rate of interest x no. of months / 12 months

Q: On October 1, Black Company receives a 10% interest-bearing note from Reese Company to settle a…

A: The interest revenue is the interest earned for the period on the note receivable, etc.

Q: A business issued a 45-day, 6% note for $210,000 to a creditor on account. Required:   Journalize…

A: Interest on notes = Notes payable x rate of interest x days/360 = $210,000*6%*45/360 = $1,575

Q: At December 31, 2021, Sheridan Company had a five-month, 5%, $79,200 note receivable that was issued…

A: Adjusting Journal Entry While preparing adjusting journal entry which brings more fairness in the…

Q: The company determines that the interest expense on a note payable for the period ending December 31…

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

Q: On October 1, Black Company receives a 4% interest bearing note from Reese Company to settle a…

A: Accounts receivable = $19400 Periods remaining in the current year = 3 months Interest rate = 4% per…

Q: The company determines that the interest expense on a note payable for the period ending December 31…

A: Journal Entry: Journal entry is the act of keeping records of transactions. Transactions are listed…

Q: The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1 December 16 Accepted…

A: 1. Interest Recognition - Interest is the income earned by the issuer of the notes on the account.…

Q: Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9 from a customer on…

A: b)

Q: On September 15, Jas Motor Service Center issued a 90-day, 18% note amounting to P10,000 for a loan…

A: The entries are passed in the books of Jas Motors Service Centre Date Particulars Debit Credit…