FINANCIAL ACCT-CONNECT
8th Edition
ISBN: 9781266627903
Author: Wild
Publisher: INTER MCG
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Chapter 7, Problem 9QS
Summary Introduction
Introduction:
To prepare: The general journal entries for the following transaction.
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Arvan Patel is a customer of Bank's Hardware Store. For Mr. Patel's latest purchase on January 1, 2018, Bank's Hardware issues a note with a principal amount of $530,000, 11% annual interest rate, and a 24-month maturity date on December 31, 2019.
Record the journal entries for Bank’s Hardware Store for the following transactions. If an amount box does not require an entry, leave it blank.
A. Note issuance.
B. Subsequent interest entry on December 31, 2018.
C. Honored note entry at maturity on December 31, 2019.
On August 2, Jun Co. receives a $7,300, 90-day, 12% note from customer Ryan Albany as payment on his $7,300 account. 1. Compute the maturity date for the above note. multiple choice
October 29
October 30
October 31
November 1
November 2
2. Prepare Jun’s journal entry for August 2.
1
Record receipt of note on account.
Question
Sylvestor Systems borrows $69,000 cash on May 15 by signing a 60-day, 8%, $69,000 note. 1. On what date does this note mature?2-a. Prepare the entry to record issuance of the note.2-b. First, complete the table below to calculate the interest expense at maturity. Use those calculated values to prepare your entry to record payment of the note at maturity.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2A
Required 2B Interest at Maturity
Required 2B General Journal
On what date does this note mature?
On what date does this note mature?
Complete this question by entering your answers in the tabs below.
Required 2A
Prepare the entry to record issuance of the note.
Journal entry worksheet
Record the issuance of the note.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
May 15…
Chapter 7 Solutions
FINANCIAL ACCT-CONNECT
Ch. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQ
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