The following transaction incurred in Guarantee section in the main branch of Petra bank on Monday 15/5/2006. 1. Guarantee of JD 80000 issued on behalf of Nile Co. for there months (2% commission, 25% collateral record in account). 2. Guarantee of JD 90000 issued on behalf of Eduetion Co. for there months (2% commission, 100% collateral by cash). 3. Guarantee of JD 56000 issued on behalf of Sar Co. for three months (2% commission, 25% collateral on credit account). 4. Guarantee of JD 75000 ended and delated, this guarantee belongs to Maher Co. with collateral 50%. 5- The bank paid on behalf of its customer (Khaled Co.) a guarantee totaled JD 55000; its collateral was 30% the requirement is the entries

The following transaction incurred in Guarantee section in the main branch of Petra bank on Monday 15/5/2006. 1. Guarantee of JD 80000 issued on behalf of Nile Co. for there months (2% commission, 25% collateral record in account). 2. Guarantee of JD 90000 issued on behalf of Eduetion Co. for there months (2% commission, 100% collateral by cash). 3. Guarantee of JD 56000 issued on behalf of Sar Co. for three months (2% commission, 25% collateral on credit account). 4. Guarantee of JD 75000 ended and delated, this guarantee belongs to Maher Co. with collateral 50%. 5- The bank paid on behalf of its customer (Khaled Co.) a guarantee totaled JD 55000; its collateral was 30% the requirement is the entries

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterD: Notes Payable And Notes Receivable

Section: Chapter Questions

Problem 3P

See similar textbooks

Similar questions

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.
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.
Presented below is information related to Samhan Trading Corp. Prepare necessary entries in general journal form for Samhan with terms 2/10, n/60. a. Account receivable of OMR 24,000 (gross) are factored with Salem Credit Corp, without guarantee at a financing charge of 7%. Cash is received for the proceeds; collections are handled by the finance company (These accounts were past the discount period). b. Specific account receivable of OMR 12,000 (gross) are pledged to Salem Credit Corp, as a security of a loan of OMR 8,000 at a finance charge of 5% of the amount of loan. The finance company will make the collection (These accounts were past the discount period).
Grayson Bank agrees to lend the Trust Company $98,759 on January 1. Trust Company signs a $98,759, 8%, 9-month, interest-bearing note. The entry made by Trust Company on January 1 to record the proceeds and issuance of the note is: Select the correct answer. A. Interest Expense$5,926 Cash$92,833 Notes Payable$98,759 B. Cash$107,648 Interest Expense$5,926 Notes Payable$98,759 Interest Payable$2,963 C. Cash$104,685 Interest Expense$5,926 Notes Payable$98,759 D. Cash$98,759 Notes Payable$98,759
Aunt May, Inc. had the following receivable financing transactions for the fiscal year ended August 31, 2021:a) On June 30, 2021, Aunt May, Inc. had an outstanding accounts receivable balance amounting to P4,000,000. The receivables were pledged to Philippine Savings Bank (PS Bank) in consideration of a 12% loan. The loan amount is 80% of the outstanding receivables. PS Bank charged the company 5% on the outstanding accounts receivable as service charge.By the end of July, Aunt May collected P1,200,000 cash from the accounts receivable net of a P120,000 sales discount. Also, by the end of July, Aunt May accepted from customers merchandise originally invoiced at P80,000 as returns.By the end of August, Aunt May collected another P900,000 after a P50,000 sales discount. The company wrote-off P200,000 of the accounts receivable as worthless.It was agreed-upon with PS Bank that remittances from collections will be made to the bank on a monthly basis and that the collections from customer…
Manahan Corporation received its August 31 bank statement showing total funds on deposit of $288,090.09. This amount was $149,158.22 in excess of the balance in the general ledger Cash account. Additional information consists of the following: The company has a 1-year, $100,000, certificate of deposit. This amount is included in the total funds listed on the bank statement. Manahan classifies this security in a separate investment account in its general ledger. Interest earned on the CD was $475 during the month. This interest is free for withdrawal and is automatically posted to the regular checking account. Manahan's first notification of the amount of interest for the month is via the bank statement, and the interest income has not yet been recorded in the general ledger Cash account. Manahan Corporation received a $50,000 draft for an oil and gas lease from XTX Exploration. This draft was presented to the bank in early July. Drafts are not cash until the maker…
On December 1, 2020, RB Company issued accounts receivable of Php6,000,000 to a bank in exchange for a loan of 80% of the accounts minus a 5% service charge on the accounts assigned. The entity signed a bank loan note. On December 31, 2020, the company collected Php2,000,000 in assigned accounts minus a discount of Php200,000. The collections were submitted to the bank as partial payment for the loan. The bank applied the collection first to the interest and then to the principal. On the loan balance, the agreed-upon interest rate is 1% each month. On the allotted accounts, the organisation took sales refunds of Php 100,000 and wrote down assigned accounts totaling Php300,000.
Grayson Bank agrees to lend the Trust Company $109,296 on January 1. Trust Company signs a $109,296, 10%, 9-month, interest-bearing note. The entry made by Trust Company on January 1 to record the proceeds and issuance of the note is: Select the correct answer. Interest Expense$8,197 Cash$101,099 Notes Payable$109,296 Cash$121,592 Interest Expense$8,197 Notes Payable$109,296 Interest Payable$4,099 Cash$117,493 Interest Expense$8,197 Notes Payable$109,296 Cash$109,296 Notes Payable$109,296