The following information is available about Friends Company: a) Friends Company borrowed cash from NAB bank by issuing a $10,000, 90-day, 12% notes to the bank on 1st of April. b) Friends Company has made the payment of the above note on due the date. c) On 10th of July Friends, Company issues another $20,000, 90-day discounted note to NAB bank. The proceeds have been received. Discount rate is 10%. d) The note issued as on 10th of July has been paid off on the due date.   Provide necessary journal entries to record the issue and payment of two different notes. Assume that a financial year has 360 days.

Q: Lexter Corporation borrows cash by signing a $90,000, 8%, eight-month note on December 1with its…

A: Interest = Principle x Rate/100 x Time/12 so, according to given information Principle amount is…

Q: On January 1, MM Co. borrows $340,000 cash from a bank and in return signs an 8% installment note…

A: Interest expense for first installment = Notes payable x rate of interest x no. of months in…

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A: Notes are issued by the organisation for receivables and payables that are to be received or paid in…

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A: Notes receivable: It is a written document by which the other person promises to pay a certain…

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A: Notes receivable: It is a written document by which the other person promises to pay a certain…

Q: Selkirk Company obtained a $15,000 note receivable from a customer on January 1, 2021. The note,…

A: Given information is: Selkirk Company obtained a $15,000 note receivable from a customer on January…

Q: Leek Company receives a $12,000, 3-month, 5% promissory note from Rey Company in settlement of an…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On January 26, Bella Co. borrowed cash from Conrad Bank by issuing a 120-day note with a face amount…

A: A promissory note can be described as a legal document that documents a loan between the lender and…

Q: On November 30, accounts receivable in the amount of P900,000 were assigned to Turon Finance Co. by…

A: Accounts Receivable (AR) are the profits or revenues that a business expects to receive from…

Q: On November 30, accounts receivable in the amount of P900,000 were assigned to Hello Finance Co. by…

A: SOLUTION- ACCOUNTS RECEIVABLE   IS A BALANCE  OF MONEY DUE TO A FIRM FOR GOOD OR SERVICES DELIVERED…

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: On October 1, Eli's Carpet Service borrows $125,000 from First National Bank on a 3-month, $125,000,…

A: Accrued Interest means the Interest which is already due but not paid with in the specific due date…

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A: The balance sheet represents the financial position of the business  The note payable is recorded as…

Q: The notes receivable account of Caimito, Inc. consisted of the following:    1. 60-day note of…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: At December 31 year-end, Crate Company has an $8,700 note receivable from a customer. Interest of 8%…

A: All assets of a company are reported in the balance sheet. Since note receivable is an asset, it…

Q: Cornbip Company received from a customer a on-year, $500,000 note bearing annual interest of 8%.…

A: The interest amount to be received by the company shall be considered while calculating the amount…

Q: On May 15, Franklin Co. borrowed cash from Dakota Bank by issuing a 90-day note with a face amount…

A: (a) The issued note cannot be discounted. It is issued at face value. Therefore, the proceeds of the…

Q: Amenadiel Co. has an 8% note receivable dated June 30, year 1, in the original amount of 150,000.…

A: A written promise to receive a sum of money at the pre determined future date is referred to as note…

Q: How much is Llido’s equity in the assigned accounts receivable as of December 31?

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A: Notes payable is defined as the liabilities that are usually issued for the long term. It indicates…

Q: On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount…

A: a. In this case, the note is not discounted. Hence, the proceeds amount of the note is equal to the…

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A: Simple interest = Principal ×Interest rate × Time =P400,000 × 10% × 612=P20,000   Maturity value =…

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A: Interest is charged on accrual basis

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A: Since, note is a discount note( not interest bearing), the value of loan = discounted present Value…

Q: he following notes receivable transactions occurred for the Hara Compan onths of the current year.…

A: Journal Entry: Date Particulars Debit Credit  Oct 09 12% Notes Receivable - Kanda $5,000…

Q: On June 1, Mickey Mouse Corporation accepted a customer's P10,000, 9 percent, 3-month note. On July…

A: Total maturity value of Notes = Principal + interest = P10,000 + 10000*9%*3/12 = P10,225

Q: On September 1, 2015, Excellent Company received an $80,000, 12%, 120-day note from a credit…

A: Cash received from bank = Maturity value - Discount charged by the bank

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: 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 November 1, 20X1, Morant Corp. borrowed $80,000 in cash by signing a nine-month, 12% note from a…

A: Notes payable is a form of debt for the business organisations for which it has to pay periodic…

Q: On February 1, Maris Company received a 9,000, 10%, four-month note receivable. The cash to be…

A: Interest on note = Face value of note x rate of interest x no. of months x 12 = 9000 x 10% x 4/12 =…

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: ABC Company accepted a P400,000 face value, 6-month, 10 percent note dated May 15 from a customer.…

A: The discounted note receivable is getting money from bank against customers' note receivable.

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: On October 1, Ramos Co. signed a $90,000, 60-day discounted note at the bank.  The discount rate was…

A: Part-A Amount which will be Discounted by Bank  = $ 90,000 x 6% x 60360…

Q: Geary Corporation had the following transactions: · Apr. 15 - Received $6,000 from Marion Company…

A: Journal entry shows the recording of transactions during an accounting year and every transaction…

Q: On November 16, Bell borrowed $10,000 from Graham and gave a 90-day, 12% note. On December 31, the…

A: As of the end of accounting period, the company that has lent money needs to record interest on a…

Q: On June 04, FDN Company sold merchandise to ABC Company and accepted a 90-day, 12% P90,000 note.…

A: calculation of cash received upon discounting are as follows

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

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A: Company discounting its notes means, the company is presenting its notes receivable from the…