Interest Income 3. Zulu Pawnshop had the following loans receivable outstanding as of December 31, 2010:Origination Date1/1/20103/31/201010/1/2010Loan Principal TermP50,00090,00040,000Interest2 years 12%1 year120 days10%24%How much accrued interest income should be recognized by Zulu Pawnshopyear?at the end of thea. 15,150b. 15,90015,950d. 24,600C.

The accrued interest is the revenue that has been earned during the period but it is not received…

Answered: Zulu Pawnshop had the following loans…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 2CE

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Everglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of the loan include a repayment of principal in eight, equal installments, paid annually from the April 1 date. The annual interest rate on the loan is 5%, recognized on December 31. (Round answers to the nearest cent, if needed.) A. Compute the interest recognized as of December 31 in year 1. B. Compute the principal due in year 1.
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
Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
Proceeds from notes payable On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount of 150,000. A. Determine the proceeds of the note, assuming the note carries an interest rate of 10%. B. Determine the proceeds of the note, assuming the note is discounted at 10%.
E10-3A Accrued Interest Payable Compute the interest accrued on each of the following notes payable owed by Northland, Inc., on December 31: Lender Date of Note Principal Interest Rate Term Maple 11/21 $18,000 11% 120 day Wyman 12/13 14,000 8 90 days Nahn 12/10 16,000 12 60 days
On January 1, 20x1, Next Co. obtains a P4,000,000 bank loan due on December 31, 20x4. Interest of 12% is due annually. The bank charges Next Co. an 11.19% nonrefundable loan origination fee. The effective interest rate on the loan is approximately equal to a. 11.19% b. 12% c . 16 % d. 17.37%
29.On Nov 24, 20X1, ABC Company borrowed P750,000, 45-day loan from a bank and pledged its receivables as collateral security. ABC received the loan proceeds after deduction of P27,000 advance interest.The entry to record the transaction on Nov 24 is: Dr Cash 750,000 Cr Loans Payable 750,000 Dr Cash 723,000, Dr Discount on notes 27,000 Cr Loans Payable Dr Cash 723,000, Dr Accounts Receivable 27,000 , Cr Loans Payable 750,000 No entry required
47. On June 30, 2021, CPA Company factored P2,500,000 of accounts receivable for P2,250,000. The allowance for uncollectible accounts for these factored receivables was P50,000. On December 1, 2021, CPA Company assigned accounts receivable of P3,500,000 as collateral of a P2,000,000, 12% annual interest rate loan from a commercial bank. CPA received the P2,000,000 less 2% finance charge based on the loan. How much is the total loss/expenses related to factoring and assignment of receivables for the year 2021?
On October 1, 2011, Coast Financial loaned Barr Corporation$300,000, receiving in exchange a nine-month, 12 percentnote receivable. Coast ends its fiscal year on December 31and makes adjusting entries to accrue interest earned on allnotes receivable. The interest earned on the note receivablefrom Barr Corporation during 2012 will amount to:a. $9,000. b. $18,000.c. $27,000. d. $36,000.
65. Borrowed P100,000 by issuing a 1-year note with 7% annual interest to Century Savings Bank on October 1, 2021. What is the adjusting entry on December 31, 2021? A. Debit: Interest Expense and Credit: Interest Payable P1,750 B. Debit: Interest Expense and Credit. Interest Payable P7,000 C. Debit: Interest Expense and Credit: Interest Payable P3,500 D. Debit: Interest Expense and Credit: Interest Payable P5,250
On Jan 1, 20X1, ABC Corp received a P300,000 3-year note from a customer. The principal and interest of the note is collectible on Jan 1, 20X4. Effective interest rate is 10% . How is the interest income at Dec 31, 20X1? PV of P1 at 10% for 3n = .75131 PV of ordinary annuity of P1 at 10% for 3n = 2.48685 7,461 22,539 24,868 30,000

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