Notes payable Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs. Sales tax payable The Company collects the tax from the customer when the sale is made on cash or on account, and periodically pays the collections to the state’s department of revenue. Many states are implementing sales taxes on purchases made on the internet also. Sales taxes are stated as percentage of the sales price. Unearned revenue It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed. Current liability Current liability is an obligation that the companies need to pay from the remaining current assets or creation of other current liabilities within a fiscal year or the operating cycle whichever is higher. To prepare: The journal entry to record the cash proceeds from sales revenue of $20,520 that includes sales tax on January 5, 2015.

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Answer 1

Question

Chapter 10, Problem 10.1AP

a)

1.

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Sales tax payable

The Company collects the tax from the customer when the sale is made on cash or on account, and periodically pays the collections to the state’s department of revenue. Many states are implementing sales taxes on purchases made on the internet also. Sales taxes are stated as percentage of the sales price.

Unearned revenue

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

Current liability

Current liability is an obligation that the companies need to pay from the remaining current assets or creation of other current liabilities within a fiscal year or the operating cycle whichever is higher.

To prepare: The journal entry to record the cash proceeds from sales revenue of $20,520 that includes sales tax on January 5, 2015.

2.

To determine

To prepare: The journal entry to record performed service for customers who had made advance payments for $10,000.

3.

To determine

To prepare: The sales taxes collected from state treasurer’s department on 14^th January 2015.

4.

To determine

To Prepare: The journal entry to record sale of 900 units of new product on credit at $50 per unit, plus 8% sales taxes on 20^th January 2015.

5.

To determine

To prepare: The journal entry to record the issuance of 5% notes payable from Company A on January 1, 2015.

6.

To determine

To prepare: The journal entry to record the cash proceeds from sales revenue of $12,420 that includes sales tax on January 25, 2015.

b)

To determine

To prepare: The adjusting entry to record 8% notes payable of Company A on Jan 31, 2015.

c)

To determine

To prepare: The current liabilities section of the balance sheet for Company A on January 31, 2015.

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Answer 2

Question

Chapter 10, Problem 10.1AP

a)

1.

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Sales tax payable

The Company collects the tax from the customer when the sale is made on cash or on account, and periodically pays the collections to the state’s department of revenue. Many states are implementing sales taxes on purchases made on the internet also. Sales taxes are stated as percentage of the sales price.

Unearned revenue

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

Current liability

Current liability is an obligation that the companies need to pay from the remaining current assets or creation of other current liabilities within a fiscal year or the operating cycle whichever is higher.

To prepare: The journal entry to record the cash proceeds from sales revenue of $20,520 that includes sales tax on January 5, 2015.

2.

To determine

To prepare: The journal entry to record performed service for customers who had made advance payments for $10,000.

3.

To determine

To prepare: The sales taxes collected from state treasurer’s department on 14^th January 2015.

4.

To determine

To Prepare: The journal entry to record sale of 900 units of new product on credit at $50 per unit, plus 8% sales taxes on 20^th January 2015.

5.

To determine

To prepare: The journal entry to record the issuance of 5% notes payable from Company A on January 1, 2015.

6.

To determine

To prepare: The journal entry to record the cash proceeds from sales revenue of $12,420 that includes sales tax on January 25, 2015.

b)

To determine

To prepare: The adjusting entry to record 8% notes payable of Company A on Jan 31, 2015.

c)

To determine

To prepare: The current liabilities section of the balance sheet for Company A on January 31, 2015.

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Answer 3

Question

Chapter 10, Problem 10.1AP

a)

1.

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Sales tax payable

The Company collects the tax from the customer when the sale is made on cash or on account, and periodically pays the collections to the state’s department of revenue. Many states are implementing sales taxes on purchases made on the internet also. Sales taxes are stated as percentage of the sales price.

Unearned revenue

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

Current liability

Current liability is an obligation that the companies need to pay from the remaining current assets or creation of other current liabilities within a fiscal year or the operating cycle whichever is higher.

To prepare: The journal entry to record the cash proceeds from sales revenue of $20,520 that includes sales tax on January 5, 2015.

2.

To determine

To prepare: The journal entry to record performed service for customers who had made advance payments for $10,000.

3.

To determine

To prepare: The sales taxes collected from state treasurer’s department on 14^th January 2015.

4.

To determine

To Prepare: The journal entry to record sale of 900 units of new product on credit at $50 per unit, plus 8% sales taxes on 20^th January 2015.

5.

To determine

To prepare: The journal entry to record the issuance of 5% notes payable from Company A on January 1, 2015.

6.

To determine

To prepare: The journal entry to record the cash proceeds from sales revenue of $12,420 that includes sales tax on January 25, 2015.

b)

To determine

To prepare: The adjusting entry to record 8% notes payable of Company A on Jan 31, 2015.

c)

To determine

To prepare: The current liabilities section of the balance sheet for Company A on January 31, 2015.

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Answer 4

Question

Chapter 10, Problem 10.1AP

a)

1.

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Sales tax payable

The Company collects the tax from the customer when the sale is made on cash or on account, and periodically pays the collections to the state’s department of revenue. Many states are implementing sales taxes on purchases made on the internet also. Sales taxes are stated as percentage of the sales price.

Unearned revenue

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

Current liability

Current liability is an obligation that the companies need to pay from the remaining current assets or creation of other current liabilities within a fiscal year or the operating cycle whichever is higher.

To prepare: The journal entry to record the cash proceeds from sales revenue of $20,520 that includes sales tax on January 5, 2015.

2.

To determine

To prepare: The journal entry to record performed service for customers who had made advance payments for $10,000.

3.

To determine

To prepare: The sales taxes collected from state treasurer’s department on 14^th January 2015.

4.

To determine

To Prepare: The journal entry to record sale of 900 units of new product on credit at $50 per unit, plus 8% sales taxes on 20^th January 2015.

5.

To determine

To prepare: The journal entry to record the issuance of 5% notes payable from Company A on January 1, 2015.

6.

To determine

To prepare: The journal entry to record the cash proceeds from sales revenue of $12,420 that includes sales tax on January 25, 2015.

b)

To determine

To prepare: The adjusting entry to record 8% notes payable of Company A on Jan 31, 2015.

c)

To determine

To prepare: The current liabilities section of the balance sheet for Company A on January 31, 2015.

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Answer 5

Chapter 10, Problem 10.1AP

a)

1.

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Sales tax payable

The Company collects the tax from the customer when the sale is made on cash or on account, and periodically pays the collections to the state’s department of revenue. Many states are implementing sales taxes on purchases made on the internet also. Sales taxes are stated as percentage of the sales price.

Unearned revenue

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

Current liability

Current liability is an obligation that the companies need to pay from the remaining current assets or creation of other current liabilities within a fiscal year or the operating cycle whichever is higher.

To prepare: The journal entry to record the cash proceeds from sales revenue of $20,520 that includes sales tax on January 5, 2015.

2.

To determine

To prepare: The journal entry to record performed service for customers who had made advance payments for $10,000.

3.

To determine

To prepare: The sales taxes collected from state treasurer’s department on 14^th January 2015.

4.

To determine

To Prepare: The journal entry to record sale of 900 units of new product on credit at $50 per unit, plus 8% sales taxes on 20^th January 2015.

5.

To determine

To prepare: The journal entry to record the issuance of 5% notes payable from Company A on January 1, 2015.

6.

To determine

To prepare: The journal entry to record the cash proceeds from sales revenue of $12,420 that includes sales tax on January 25, 2015.

b)

To determine

To prepare: The adjusting entry to record 8% notes payable of Company A on Jan 31, 2015.

c)

To determine

To prepare: The current liabilities section of the balance sheet for Company A on January 31, 2015.

Answer 6

Chapter 10, Problem 10.1AP

a)

1.

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Sales tax payable

The Company collects the tax from the customer when the sale is made on cash or on account, and periodically pays the collections to the state’s department of revenue. Many states are implementing sales taxes on purchases made on the internet also. Sales taxes are stated as percentage of the sales price.

Unearned revenue

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

Current liability

Current liability is an obligation that the companies need to pay from the remaining current assets or creation of other current liabilities within a fiscal year or the operating cycle whichever is higher.

To prepare: The journal entry to record the cash proceeds from sales revenue of $20,520 that includes sales tax on January 5, 2015.

Answer 7

Chapter 10, Problem 10.1AP

a)

1.

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Sales tax payable

The Company collects the tax from the customer when the sale is made on cash or on account, and periodically pays the collections to the state’s department of revenue. Many states are implementing sales taxes on purchases made on the internet also. Sales taxes are stated as percentage of the sales price.

Unearned revenue

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

Current liability

Current liability is an obligation that the companies need to pay from the remaining current assets or creation of other current liabilities within a fiscal year or the operating cycle whichever is higher.

To prepare: The journal entry to record the cash proceeds from sales revenue of $20,520 that includes sales tax on January 5, 2015.

Answer 8

2.

To determine

To prepare: The journal entry to record performed service for customers who had made advance payments for $10,000.

Answer 9

2.

To determine

To prepare: The journal entry to record performed service for customers who had made advance payments for $10,000.

Answer 10

3.

To determine

To prepare: The sales taxes collected from state treasurer’s department on 14^th January 2015.

Answer 11

3.

To determine

To prepare: The sales taxes collected from state treasurer’s department on 14^th January 2015.

Answer 12

4.

To determine

To Prepare: The journal entry to record sale of 900 units of new product on credit at $50 per unit, plus 8% sales taxes on 20^th January 2015.

Answer 13

4.

To determine

To Prepare: The journal entry to record sale of 900 units of new product on credit at $50 per unit, plus 8% sales taxes on 20^th January 2015.

Answer 14

5.

To determine

To prepare: The journal entry to record the issuance of 5% notes payable from Company A on January 1, 2015.

Answer 15

5.

To determine

To prepare: The journal entry to record the issuance of 5% notes payable from Company A on January 1, 2015.

Answer 16

6.

To determine

To prepare: The journal entry to record the cash proceeds from sales revenue of $12,420 that includes sales tax on January 25, 2015.

Answer 17

6.

To determine

To prepare: The journal entry to record the cash proceeds from sales revenue of $12,420 that includes sales tax on January 25, 2015.

Answer 18

b)

To determine

To prepare: The adjusting entry to record 8% notes payable of Company A on Jan 31, 2015.

Answer 19

b)

To determine

To prepare: The adjusting entry to record 8% notes payable of Company A on Jan 31, 2015.

Answer 20

c)

To determine

To prepare: The current liabilities section of the balance sheet for Company A on January 31, 2015.

Answer 21

c)

To determine

To prepare: The current liabilities section of the balance sheet for Company A on January 31, 2015.

Answer 22

Expert Solution & Answer

Answer 23

Expert Solution & Answer

Answer 24

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Answer 25

Ch. 10 - Prob. 1Q Ch. 10 - Prob. 2Q Ch. 10 - Prob. 3Q Ch. 10 - Prob. 4Q Ch. 10 - Prob. 5Q Ch. 10 - Prob. 6Q Ch. 10 - 6 What are long-term liabilities? Give three...Ch. 10 - 17 As a source of long-term financing, what are...Ch. 10 - Prob. 9Q Ch. 10 - Prob. 10Q

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To prepare: The journal entry to record performed service for customers who had made advance payments for $10,000.

To prepare: The sales taxes collected from state treasurer’s department on 14^th January 2015.

To Prepare: The journal entry to record sale of 900 units of new product on credit at $50 per unit, plus 8% sales taxes on 20^th January 2015.

To prepare: The journal entry to record the issuance of 5% notes payable from Company A on January 1, 2015.

To prepare: The journal entry to record the cash proceeds from sales revenue of $12,420 that includes sales tax on January 25, 2015.

To prepare: The adjusting entry to record 8% notes payable of Company A on Jan 31, 2015.

To prepare: The current liabilities section of the balance sheet for Company A on January 31, 2015.

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Chapter 10 Solutions

Videos

To prepare: The journal entry to record performed service for customers who had made advance payments for $10,000.

To prepare: The sales taxes collected from state treasurer’s department on 14th January 2015.

To Prepare: The journal entry to record sale of 900 units of new product on credit at $50 per unit, plus 8% sales taxes on 20th January 2015.

To prepare: The journal entry to record the issuance of 5% notes payable from Company A on January 1, 2015.

To prepare: The journal entry to record the cash proceeds from sales revenue of $12,420 that includes sales tax on January 25, 2015.

To prepare: The adjusting entry to record 8% notes payable of Company A on Jan 31, 2015.

To prepare: The current liabilities section of the balance sheet for Company A on January 31, 2015.

Want to see the full answer?

Chapter 10 Solutions

To prepare: The sales taxes collected from state treasurer’s department on 14^th January 2015.

To Prepare: The journal entry to record sale of 900 units of new product on credit at $50 per unit, plus 8% sales taxes on 20^th January 2015.