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Notes Receivable:
Note receivable refers to a written promise for the amounts to be received within a stipulated period of time. This written promise is issued by a debtor or borrower to lender or creditor. Notes receivable is an asset of a business.
To Record: the acceptance of notes receivable for August 1, of Technologies T.
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Notes Receivable:
Note receivable refers to a written promise for the amounts to be received within a stipulated period of time. This written promise is issued by a debtor or borrower to lender or creditor. Notes receivable is an asset of a business.
To Record: the
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Notes Receivable:
Note receivable refers to a written promise for the amounts to be received within a stipulated period of time. This written promise is issued by a debtor or borrower to lender or creditor. Notes receivable is an asset of a business.
To Record: the receipt of the cash by Corporation FB at maturity.
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Financial Accounting
- H9.C6 On October 29, Lobo Company began operations by purchasing razors for resale. The razors have a 90-day warranty. When a razor is returned, the company discards it and malls a new one from Merchandise Inventory to the customer. The company's cost per new razor Is $20 and its retall selling price is $75. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. November 11 Sold 105 razors for $7,875 cash. November 30 Recognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 15 razors that were returned under the warranty. December 16 Sold 220 razors for $16,500 cash. December 29 Replaced 30 razors that were returned under the warranty. December 31 Recognized warranty expense related to December sales with an adjusting entry. January 5 Sold 150 razors for $11, 250 cash. January 17 Replaced 50 razors that were returned under the warranty. January 31 Recognized warranty expense related to January…arrow_forwardExcercises E7.8 (LO3) (Recording Bad Debts) At the end of 2019, Sorter plc has accountsreceivable of £900,000 and an allowance for doubtful accounts of £40,000. On January 16, 2020, Sorter determined that its receivable from Ordonez Orchards£8,000 will not be collected, and management authorized its write-off. Instructions Prepare the journal entry for Sorter plc to write off the Ordonez receivable. What is the cash realizable value of Sorter plc's accounts receivable beforethe write-off of the Ordonez receivable? What is the cash realizable value of Sorter plc's accounts receivable afterthe write-off of the Ordonez receivable? E7.9 (LO3) (Computing Bad Debts and Preparing Journal Entries) The trialbalance before adjustment of Estefan Inc. shows the following balances. Accounts Receivable $80.000 (D) Allowance for Doubtful Accounts $1.750 (D) Sales Revenue (net, all on credit) $580.000 (K) Instructions Give the entry for estimated bad debts assuming that the allowance is to…arrow_forwardEB7. 12.2 McMasters Inc. specializes in BBQ accessories. In order for the company to expand its business, they take out a long-term loan in the amount of $800,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 9%. Each year on December 31, the company pays down the principal balance by $50,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.arrow_forward
- BE8.9 (LO 3), AN Presented below are data on three promissory notes. Determine the missing amounts. Date of Note Terms Maturity Date Principal Annual Interest Rate Total Interest a. April 1 60 days ? $600,000 9% ? b. July 2 30 days ? 90,000 ? $600 c. March 7 6 months ? 120,000 10% ? BE8.10 (LO 3), AP On January 10, 2022, Masterson Co. sold merchandise on account to Tompkins for $8,000, terms n/30. On February 9, Tompkins gave Masterson Co. a 7% promissory note in settlement of this account. Prepare the journal entry to record the sale and the settlement of the accounts receivable. (Omit cost of goods sold entries.)\\narrow_forward65. 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 P5,250arrow_forward35.On December 31, 2021, the Trust Finance Company had a P5,000,000 note receivable from Leila Company. The note bears 10% interest. The books reported accrued interest of P500,000 on this date. Because of financial distress being suffered by Leila Company, Trust Finance agreed to the restructuring and modification of the terms of its loan to Burgundy as follows: ·reduction of principal to P3,500,000; ·reduction of interest to 7% payable annually beginning Dec. 31, 2022; ·accrued interest on Dec. 31, 2021 is condoned; and ·principal payment was reset to Dec. 31, 2023. The prevailing market rate of interest for similar obligations on the date of restructuring decreased to 9%. Use present value factors rounded to two decimal places. How much impairment loss should Trust Finance Company record on December 31, 2021 as a result of the restructuring?arrow_forward
- M10-6 (Algo) Recording Notes Payable [LO 10-2] Part 2 Skip to question [The following information applies to the questions displayed below.] Greener Pastures Corporation borrowed $1,250,000 on November 1, 2021. The note carried a 9 percent interest rate with the principal and interest payable on June 1, 2022. (a) The note issued on November 1. (b) The interest accrual on December 31.arrow_forwardEX.06.144 On April 7, Wilhelm, Inc. sold goods for $50,000 and accepted a 10%, 60-day note. On April 22, the company sold the note to a bank at a 13% discount rate. Required:Compute the amount of interest revenue and the loss on sale of the note. Assume a 360-day year. Round your answers to two decimal places. Interest revenue $ Loss on sale of note $arrow_forwardImpairment of zero-interest notes receivable, GAAP vs. IFRS On December 31, 2020, Firth Company borrowed $62,092 from Paris Bank, signing a 5-year, $100,000 zero-interest note. The note was issued to yield 10% interest. Unfortunately, during 2022, Firth began to experience financial difficulty. As a result, at December 31, 2022, Paris Bank determined that it was probable that it would collect only $75,000 at maturity. The market rate of interest on loans of this nature is now 11%. 1,Instructions: On March 31, 2023, Paris learns that Firth will be able to repay the loan under the original terms. Paris Bank uses IFRS. Prepare the journal entry to be recorded on March 31, 2023, if any. Answer within 45mins.it would be really helpful!arrow_forward
- . Carson Company borrowed P3,600,000 from a bank evidenced by a non-interest-bearing note due in five years. At the 12% imputed interest rate for this type of loan, the present value of the note is P2,550,000 on January 1, 2020. What interest expense should be reported in 2020? Group of answer choices P306,000 P350,000 P432,000 P0arrow_forward19. On January 1, 2010, West Co. sold equipment for a $400,000 zero-interest-bearing note dueon January 1, 2013. The prevailing rate of interest for a note of this type at January 1, 2010 was10%. What amount of interest revenue should be included in West's 2011 income statement?a. $0b. $30,000c. $33,000d. $40,000arrow_forward1. On November 1, 2021, FDN Trading accepted a 90-day, 8% P10,000,000 note from ABC Co. FDN immediately discounted with recourse the note to a bank that offers a 15% discount rate. On maturity date, ABC Co dishonoured the note. The bank charged processing fee of P80,000. How much is the total receivable of FDN Trading from ABC Co? 2. On November 10, 2021, FDN Trading purchased goods for resale at a list price of P500,000 less 10-5 on terms 40% down payment, balance 2/10, n/30. On November 13, FDN issued a debit memo for defective merchandise purchased amounting to P10,500. The account was paid in full on November 30, 2021. How much is the amount to be recorded as Purchases on November 10, 2021? 3. On November 15, FDN Trading signed a P370,000, 13 percent, 180-day note payable with the bank. The note was issued at a discount. How much cash did FDN Trading receive from this transaction?arrow_forward
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