Liabilities Liabilities are the obligations of the business to pay the creditors and others, towards purchasing goods and services on account, and/or other financial benefits received. Liabilities can be short term (current liability) or long-term depending upon the time it is paid-off. While current liabilities are paid within one year, on the other hand, long-term liabilities are paid over one year period. Rules of debit and credit: “An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited. Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”. To Journalize: The transaction to record the collection of cash on June 1.

Question

Want to see the full answer?

Answer 1

Question

Chapter 11, Problem 11.3SE

1.

To determine

Liabilities

Liabilities are the obligations of the business to pay the creditors and others, towards purchasing goods and services on account, and/or other financial benefits received. Liabilities can be short term (current liability) or long-term depending upon the time it is paid-off. While current liabilities are paid within one year, on the other hand, long-term liabilities are paid over one year period.

Rules of debit and credit:

“An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited.

Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”.

To Journalize: The transaction to record the collection of cash on June 1.

2.

To determine

To Journalize: The transaction required at December 31, with assumption that no revenue earned has been recorded.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

On June 1, Davis Inc. issued an $76,100, 12%, 120-day note payable to Garcia Company Assume that the fiscal year of Garcia ends June 30. Using a 360-day year in your calculations, what is the amount of interest revenue recognized by Garcia in the following year? When required, round your answer to the nearest dollar. a.$1,522 b.$9,132 c.$761 d.$2,308

On December 1, Daw Company accepts a $32,000, 45-day, 9% note from a customer. (1) Prepare the year-end adjusting entry to record accrued interest revenue on December 31. (2) Prepare the entry required on the note's maturity date assuming it is honored. Note: Use 360 days a year. View transaction list No 1 2 Date View journal entry worksheet December 31 January 15 Interest receivable Interest revenue Cash Notes receivable Interest receivable General Journal Debit 240 32,360 Credit 240 32,000 260 X

On August 2, Jun Company receives a $7,000, 90-day, 11.5% note from customer Ryan Albany as payment on his $7,000 account receivable. Prepare Jun's journal entry assuming the note is honored by the customer on October 31 of that same year. (Do not round intermediate calculations. Round your answers to nearest whole dollar value. Use 360 days a year.) View transaction list Journal entry worksheet 1 Record cash received on note plus interest. Note: Enter debits before credits. Date October 31 General Journal Debit Credit

Answer 2

Question

Chapter 11, Problem 11.3SE

1.

To determine

Liabilities

Liabilities are the obligations of the business to pay the creditors and others, towards purchasing goods and services on account, and/or other financial benefits received. Liabilities can be short term (current liability) or long-term depending upon the time it is paid-off. While current liabilities are paid within one year, on the other hand, long-term liabilities are paid over one year period.

Rules of debit and credit:

“An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited.

Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”.

To Journalize: The transaction to record the collection of cash on June 1.

2.

To determine

To Journalize: The transaction required at December 31, with assumption that no revenue earned has been recorded.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 11, Problem 11.3SE

1.

To determine

Liabilities

Liabilities are the obligations of the business to pay the creditors and others, towards purchasing goods and services on account, and/or other financial benefits received. Liabilities can be short term (current liability) or long-term depending upon the time it is paid-off. While current liabilities are paid within one year, on the other hand, long-term liabilities are paid over one year period.

Rules of debit and credit:

“An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited.

Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”.

To Journalize: The transaction to record the collection of cash on June 1.

2.

To determine

To Journalize: The transaction required at December 31, with assumption that no revenue earned has been recorded.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 11, Problem 11.3SE

1.

To determine

Liabilities

Liabilities are the obligations of the business to pay the creditors and others, towards purchasing goods and services on account, and/or other financial benefits received. Liabilities can be short term (current liability) or long-term depending upon the time it is paid-off. While current liabilities are paid within one year, on the other hand, long-term liabilities are paid over one year period.

Rules of debit and credit:

“An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited.

Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”.

To Journalize: The transaction to record the collection of cash on June 1.

2.

To determine

To Journalize: The transaction required at December 31, with assumption that no revenue earned has been recorded.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 11, Problem 11.3SE

1.

To determine

Liabilities

Liabilities are the obligations of the business to pay the creditors and others, towards purchasing goods and services on account, and/or other financial benefits received. Liabilities can be short term (current liability) or long-term depending upon the time it is paid-off. While current liabilities are paid within one year, on the other hand, long-term liabilities are paid over one year period.

Rules of debit and credit:

“An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited.

Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”.

To Journalize: The transaction to record the collection of cash on June 1.

2.

To determine

To Journalize: The transaction required at December 31, with assumption that no revenue earned has been recorded.

Answer 6

Chapter 11, Problem 11.3SE

1.

To determine

Liabilities

Liabilities are the obligations of the business to pay the creditors and others, towards purchasing goods and services on account, and/or other financial benefits received. Liabilities can be short term (current liability) or long-term depending upon the time it is paid-off. While current liabilities are paid within one year, on the other hand, long-term liabilities are paid over one year period.

Rules of debit and credit:

“An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited.

Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”.

To Journalize: The transaction to record the collection of cash on June 1.

Answer 7

Chapter 11, Problem 11.3SE

1.

To determine

Liabilities

Liabilities are the obligations of the business to pay the creditors and others, towards purchasing goods and services on account, and/or other financial benefits received. Liabilities can be short term (current liability) or long-term depending upon the time it is paid-off. While current liabilities are paid within one year, on the other hand, long-term liabilities are paid over one year period.

Rules of debit and credit:

“An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited.

Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”.

To Journalize: The transaction to record the collection of cash on June 1.

Answer 8

2.

To determine

To Journalize: The transaction required at December 31, with assumption that no revenue earned has been recorded.

Answer 9

2.

To determine

To Journalize: The transaction required at December 31, with assumption that no revenue earned has been recorded.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. 11 - Prob. 1QC Ch. 11 - On January 1, 2016, a business borrowed 18,000 on...Ch. 11 - A company sells 180,000 (selling price) of goods...Ch. 11 - Prob. 4QC Ch. 11 - Prob. 5QC Ch. 11 - Prob. 6QC Ch. 11 - Prob. 7QC Ch. 11 - Vega Company expects to pay a 4% bonus on net...Ch. 11 - Prob. 9QC Ch. 11 - Prob. 10QC

Solution Summary: The author explains how to journalize the transaction to record the collection of 51,000 cash in the books of Company G on June 1.

Videos

To Journalize: The transaction required at December 31, with assumption that no revenue earned has been recorded.

Want to see the full answer?

Chapter 11 Solutions