You and several classmates are studying for the next accounting examination. They ask you to answer the following questions:   1.If cash is borrowed on a $70,000, 9-month, 10% note on July 1, how much interest expense would be incurred by December 31?   2.The cash register total including sales taxes is $42,000, and the sales tax rate is 5%. What is the sales taxes payable?   3.If $60,000 is collected in advance on November 1 for 6-month magazine subscriptions, what amount of subscription revenue should be recognized on December 31?

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

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

Q: On May 1, Year 1, Benz's Sandwich Shop loaned $10,000 to Mark Henry for one year at 6 percent…

A: Workings. a) Given, Loan Amount=$10000,Interest Rate=6%,Time=8 months(i.e. from May to December)…

Q: On October 31, Sarah Willis borrowed $5,600 from the Vestal Central Bank. She gave the bank her…

A: The question is based on the concept of discounting notes. Notes are a debt financial arrangement…

Q: At December 31 year-end, Crain Corporation has an $8,400 note receivable from a customer. Interest…

A: A note receivable is a document which is written promise made which indicates an amount to be…

Q: A private enterprise sold some merchandise for $160,000 on January 1, 2020. The customer paid…

A: It is the current value of future sum of money to be received at specified interest rate

Q: On May 1, Year 1, Benz's Sandwich Shop loaned $12,000 to Mark Henry for one year at 6 percent…

A: The interest amount is obtained when the loan amount is multiplied by the interest rate. Interest…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Interest on note = Notes payable x interest payable x no. of days/365 = 34,560*10%*45/360 = $432

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

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

Q: On September 1, 2021, Middleton Corp. lends cash and accepts a $5,000 note receivable that offers…

A: Interest = Principal x rate of interest x no. of months / 12 months

Q: Roni Lockard signed a $26,500 simple discount promissory note at a certain bank. The discount rate…

A: Discount note: Selling the note with discount value which means less than the face value.

Q: How much was the check he gave to the bank for payment?

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: Martinez Co. borrowed $79,200 on March 1 of the current year by signing a 60-day, 9%,…

A: The interest expense  is calculated as  follows  $79200 × 9% × 60/360   = $1188

Q: On October 23, you plan to purchase a $1,200 computer by using one of your two credit cards. The…

A: Given Data: Computer Cost = $1,200 Silver card charges = 18% Gold card Charges = 18% Repayment:…

Q: On March 20, the Agricultural Bank deducted engineer Valdez a rate of 18% annual simple in a…

A: Simple Interest: The simple interest on a particular amount is calculated as the product of interest…

Q: On November 25 of the current year, a company borrows $8,000 cash by signing a 90-day, 5% note…

A: The accrued interest payable shall be recorded on December 31 in accordance with the accrual basis…

Q: Proco had an account payable of $3,800 due to Shiroo Inc., on of its suppliers. The amount was due…

A: In  horizontal statement model, the transactions are shown in balance sheet equation as well as…

Q: On December 1, Williams Company borrowed $45,000 cash from Second National Bank by signing a 90-day,…

A: >Notes Payables are the note issued by the borrower, agreeing to pay the amount of note, along…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

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

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: The journal entries are prepared to record daily transactions of the business.

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Journal entries is the term of accounting which means reporting of the transactions of the business…

Q: On May 1, Year 1, Benz's Sandwich Shop loaned $12,000 to Mark Henry for one year at 7 percent…

A: a. Interest income = Loan amount x interest rate x no. of months/12 = $12000*7%*8/12 = $560

Q: Arvan Patel is a customer of Bank’s Hardware Store. For Mr. Patel’s latest purchase on January 1,…

A: Total interest on Note = face value of note x rate of interest x no. of years = $459,505 x 14% x 2…

Q: The following selected transactions were taken from the books of Ripley Company for Year 1: 1. On…

A: 1) Cash paid for interest: $70000 x 6% x 4/12 = $1400 (2) Interest expense: $70000 x 6% x 4/12 =…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Interest on notes = face value of notes x rate of interest x no. Of days/360 = 37440*8%*30/360 =…

Q: On December 31 year-end, Crain Corporation has an $8,400 note receivable from a customer. The…

A: A note receivable is a document which is written promise made which indicates an amount to be…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Interest on note = Notes x interest rate x no. of days/365 = (30000-4000)*10%*30/360 = $217

Q: abardeen corporation borrowed 58,000 from the bank on october 1, year 1. the note had a 4 percent…

A: d. Compute the total amount of cash (principal and interest) that was paid to bank on March 31, Year…

Q: On May 15, Maynard Co. borrowed cash from Texas Bank by issuing a 60-day note with a face amount of…

A:

Q: Lonergan Company occasionally uses its accounts receivable to obtain immediate cash. At the end of…

A: Prepare the Journal Entries on July 1 Detailed Journal Entries are given below:

Q: Abardeen Corporation borrowed $90,000 from the bank on October 1, Year 1. The note had an 8 percent…

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

Q: On June 29, a retailer buys goods worthy P3,000. To take advantage of a 5% cash discount, the…

A: Calculations are as follows.

Q: May 15, Holt's Clothiers borrowed some money on a 4-month note to provide cash during the slow…

A: Journal entry is the process of documenting commercial transactions for the first time in the books…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

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

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: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Maturity value of jones note = Face value + interest = 30000 + 30000*10%*75/360 = $625

Q: On March 31, Dower Publishing discounted a $30,000 note at a local bank. The note was dated February…

A: Notes receivable: Notes receivable denotes a long-term asset that describes the amount to be…

Q: abardeen corporation borrowed 58,000 from the bank on october 1, year 1.  The note had a 4 percent…

A: Note payable: Note payable refers to the liability of the business, as business borrow money against…

Q: On January 1, 2018, a business borrowed $18,000 on a five-year, 5% note payable. At December 31,…

A:

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

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

Q: On January 1, 2018, a business borrowed $18,000 on a five-year, 5% note payable. At December 31,…

A:

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 May 1, Year 1, Benz's Sandwich Shop loaned $12,000 to Mark Henry for one year at 6 percent…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: 7. )River Ridge Music School borrowed $30,000 from the bank signing a 6%, 6-month note on November…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: [The following information applies to the questions displayed below.] On January 1, 2018, Brown Co.…

A: The accounting equation is sum of assets=sum of liabilities and owner's equity. The items of income…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Total amount receivable from Darnell Jones = notes payable + service charges =(40320 +…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Interest on note = face value of the note x rate of interest x no. Of days/360 = (48960-4000)…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is