Fun Inc. purchased a truck from Phillips Co. by issuing a 3-month, 9% note payable for P50,000 on November 1. If adjusting entries are made at year- end, what is the accrued expense adjusting entry on December 31? * O DR Interest Expense 375; CR Interest Payable 375 O DR Interest Expense 1,125; CR Interest Payable 1,125 O DR Interest Expense 750; CR Interest Payable 750 DR Interest Expense 3,000; CR Interest Payable 3,000

Fun Inc. purchased a truck from Phillips Co. by issuing a 3-month, 9% note payable for P50,000 on November 1. If adjusting entries are made at year- end, what is the accrued expense adjusting entry on December 31? * O DR Interest Expense 375; CR Interest Payable 375 O DR Interest Expense 1,125; CR Interest Payable 1,125 O DR Interest Expense 750; CR Interest Payable 750 DR Interest Expense 3,000; CR Interest Payable 3,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
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