The following note transactions occurred during the year for Zuber Company: On November 25, Zuber issued a 90-day, 129% note payable for $6,000 to Porter Company for merchandise. On December 10, Zuber signed a 120-day, $7,200 note at the bank at 10%. On December 23, Zuber gave Dale, Inc. a $9,000, 10%, 60-day note in payment of its account. Calculate the amount of the necessary interest accrual for each note payable at December 31. (Round to nearest whole dollar.) Interest Accrual Porter Company note $ Bank note Dale, Inc. note o o

The following note transactions occurred during the year for Zuber Company: On November 25, Zuber issued a 90-day, 129% note payable for $6,000 to Porter Company for merchandise. On December 10, Zuber signed a 120-day, $7,200 note at the bank at 10%. On December 23, Zuber gave Dale, Inc. a $9,000, 10%, 60-day note in payment of its account. Calculate the amount of the necessary interest accrual for each note payable at December 31. (Round to nearest whole dollar.) Interest Accrual Porter Company note $ Bank note Dale, Inc. note o o

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,...

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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 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.
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