FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $122,400 on December 31, 2022. The
proceeds of the note were $116,400.
c. 1. Record the journal entry to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2022.
2. Record the journal entry to show the effects of recording interest expense for the month of September.
3. Record the journal entry to show the effects of repaying the note on December 31, 2022.
Complete this question by entering your answers in the tabs below.
Required C1 Required C2 Required C3
Record the journal entry to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2022.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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Journal entry worksheet
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1
Using the given information, calculate the amount in respect of Subscription that is needed to be
credited into Income and Expenditure account. Also show various ledger accounts. During the
Current year (2020), subscription received in Cash is $ 50,000. It also includes the amount that is
receivable during the previous year (2019) of $ 2,500 and amount received in advance for next year
(2021) for $1,500. Also there is an outstanding receivable for 2020 of $ 4,500.
On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $120,900 on December 31, 2022. The
proceeds of the note were $116,400.
Required:
a. Calculate the discount rate used by the lender.
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