On September 1, Starr Guitar Corp, borrowed $24,000 from their bank, and signed a 8%, 3- month bank loan. Principal and interest are due on December 1. If Starr prepares monthly financial statements, the adjusting entry that they should prepare for interest on September 30 would be (a) debit Interest Expense, $160; credit Interest Payable, $160. (b) debit Interest Expense, $1,920; credit Interest Payable, $1,920. (c) debit Bank Loan Payable, $480; credit Cash, $480. (d) debit Cash, $24,000; credit Bank Loan Payable, S24.000.
Q: The income statement disclosed the following items for the year: Depreciation expense $40,700 Gain…
A: Solution a: Statement of Cash Flows (Partial) Particulars Amount Cash flows from operating…
Q: Complete the investment chart based on the facts given for each situation. Assume each person is…
A: Here discuss about the details of share of annual income to retirement benefit plan either for…
Q: Steiner's required rate of return on similar projects is 20 percent. How much more/(less) would…
A: Steiner company recently established a subsidiary in Belarus. A rival has offered Steiner to…
Q: Wet Weekend Swim Park sells individual and family tickets, which include a meal, three beverages and…
A: Formula: Total break-even sales = Fixed costs / Weighted average contribution margin per unit…
Q: Ms. Ann Chavez, the owner of the business, transferred cash from personal bank account to the…
A: Debit Credit Cash 902,750.00 -…
Q: Cash Dividends Sanders Corporation has the following shares outstanding: 9,000 shares of $50 par…
A: Total dividend=Preferred dividend+Common dividend
Q: Brecker Inc., a greeting card company, had the following statements prepared as of December 31,…
A: The financial statements contain a set of statements. The three major statements in the company's…
Q: Prepare the Journal Entries to the individual T-Account
A: Journal entries recording is the first step of accounting cycle. Under this, atleast one account is…
Q: ect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is…
A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…
Q: Budgeted Cash Collections, Budgeted Cash Payments Historically, Ragman Company has had no…
A: Forecasted amounts are the one which are estimated in advance so that necessary actions can be taken…
Q: The Western Company presents the production and cost data for the first six months of the 2015.…
A: Mixed costs is the combination of variable and fixed costs. High-low method is used to bifurcate the…
Q: Pass Journal Entries: Recording Cost of Goods Sold in a Perpetual System: • Daisy's sells a pair of…
A: Periodic inventory method: It is a inventory valuation method in which inventory is updated at the…
Q: Emma bonds will mature in eight years; the coupon rate of the bond is 6% paid semiannually. If the…
A: Calculation of Selling Price of Bonds Face Value of Bonds = $ 1,000 Annual rate of interest = 6%…
Q: define cash flow activities used in Business
A: A cash flow statement is a basic financial statement that shows a company's cash inflows or cash…
Q: Aldor Corporation opened a new store on January 1, 2014. During 2014, the first year of operations,…
A: Weighted Average - Under the Weighted Average Method, the cost is considered to be average at the…
Q: Berring Company produces two products: the deluxe and the standard. The deluxe sells for $40,and the…
A: Budgets are forecasts made at the beginning of the period to determine the estimated sales units…
Q: Balance of Insurance Expense The trial balance for Ariel Certified Cleaners appears as follows:…
A: Adjustment Entries Adjustment entries which are provided to the financial statement at the end of…
Q: When would the terms of a union agreement take precedence over employment standards: O The union…
A: The union agreement must be followed when collectively taking a decision and following on all the…
Q: Starling Co. is considering disposing of a machine with a book value of $21,200 and estimated…
A: Asset replacement decision is made in order to increase productivity by replacing a new asset with…
Q: Multiple Choice
A: $265,600 Explanation: Non-cash expenditures like depreciation and amortization are excluded from…
Q: Terrance Company reported $20,000 retained earnings at the beginning of the year. The company…
A: Treasury shares are share repurchased by company.These are to be measured at cost. Any difference…
Q: The tax rates for a particular year are shown below: Taxable Income Tax Rate $0 – 50,000 15 %…
A: Income taxes is a form of direct taxes. This means taxes or obligations which needs to be paid out…
Q: Bonneau Company currently has 20,000 shares of $10 par common stock outstanding. Prepare entries to…
A: Treasury stock: Shares which are bought back by the company from the open market but not retired…
Q: Prepare the Adjusting Journal Entry
A: Journal entries recording is the first step of accounting cycle process. Under this, atleast one…
Q: Required: 1. Compute the profit-linked productivity measure. By how much did profits increase due to…
A: Profits Profits refer to the monetary benefit realized when the total revenues from a business…
Q: On January 1, 2016, Bise Company signed an eight-year lease for office space. The entity has the…
A: Depreciation: - Depreciation is the amount of reduction in the value of assets by its regular use…
Q: 44. All are found in the By laws, except: Group of answer choices Rights and obligations of a…
A: Bylaws are the rules and regulations that a company has to follow to run its business. It is a…
Q: Prepare Closing Entries
A: The questions is related to Journal Entries. Journal entries are the first step of accounting. All…
Q: Required: Prepare the journal entries required from the issuance of the note until its maturity on…
A: Note payable is one of the liability of the business, on which regular interest payments needs to be…
Q: Bonneau Corporation has 100,000 shares of $10 par common stock outstanding. On July 31, the Board of…
A: Working Note: No. of shares issued = No. of common shares outstanding x Stock dividend rate =…
Q: Ms. Ann Chavez, the owner of the business, transferred cash from personal bank account to the…
A: The income statement is one of the financial statements of the business which tells about the…
Q: Sharp Uniforms designs and manufactures uniforms for corporations throughout the United States and…
A: Cash Coverage Ratio = (Earnings Before Interest and Taxes + Non-Cash Expenses) ÷ Interest Expense…
Q: How does taxation for the corporate form and taxation for the partnership form diffe
A: A business can be run as various different legal forms. Some of the popular legal form that a…
Q: You are provided with the following information for Keon Company, You are asked to assist in tne…
A: Direct material purchase budget is prepared to determine the amount of direct material to be…
Q: please answer within 30 minutes
A: All costs that are directly related to acquisition, construction and production of an qualifying…
Q: ABC Inc purchased $9,000 inventory during the month of November from CDE Co. CDE applied a credit…
A: Formula used: Net purchases = Purchases - Purchase returns. Deduction of purchase returns value from…
Q: What kind of operations are listed on the cash flow statement? Is it important the order these…
A: A cash flow statement is a basic financial report that depicts a company's cash inflows (cash…
Q: 10 Kingeade Corporation keeps careful track of the time required to fill orders. Data concerning a…
A: Formula used: Manufacturing cycle efficiency = Process Time / Throughput time.
Q: What is the difference between a product cost and a period cost? Give three examples of each. 2.…
A: The costs can be classified as classified as product cost, period cost, direct costs or indirect…
Q: Wheels, Inc. is a manufacturer of bicycles sold through retail bicycle shops in the southeastern…
A: The answer is stated below:
Q: In early 2021, Amina Corp. had balances in account receivables of BD 125,000 and allowance for…
A: GIVEN In early 2021, Amina Corp. had balances in account receivables of BD 125,000 and allowance…
Q: What are not-for-profit corporations?
A: Definition A nonprofit corporation is a business that exists for the public welfare rather than for…
Q: debit or credit? accounts payable unearned revenue prepaid expense repairs and maintenance…
A: Assets are recorded in Balance Sheet and have debit balances and liabilities have credit balances.…
Q: The treasurer of Building Materials Inc. enters into a fair value hedge at the end of the third…
A: Comprehensive income: It includes both the net earnings earned by an entity as a result of it's…
Q: The Table division of Timber Products, Inc. sells all of its output to the Finishing Division of the…
A: Transfer price is that price which is used by one department or division to transfer products to…
Q: Maria and Javier are the equal partners in MarJa, a partnership that is a qualified trade or…
A: Qualified business income is the amount of income, gain , loss and deduction that is qualified of…
Q: Q16)Which accounting concept specifies the practice of crediting closing stock to the trading…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: On June 30, 2021, Moran Corporation issued $13.0 million of its 8% bonds for $11.7 million. The…
A: Lets understand basics. When bond is issued for less than its face value then it is known to be…
Q: he ledger of Blossom Company has the following work in process inventory account. Work in…
A: Process costing is one of the important concept of cost accounting. This is used where product has…
Q: 3. The mid-month convention applies to... a. assets purchased during the last 3 months whose…
A: Mid-month conventions are used in order to simplify the recording of values of asset depreciation…
Step by step
Solved in 2 steps with 1 images
- K Cheap Inc. borrowed $95,000 on October 1 by signing a note payable to Scotiabank. The interest expense for each month is $554. The loan agreement requires Cheap Inc. to pay interest on December 31. 1. Make Scotiabank's adjusting entry to accrue interest revenue and interest receivable at October 31, at November 30, and at December 31. Date each entry and include its explanation. 2. Post all three entries to the Interest Receivable account. You need not take the balance of the account at the end of each month. 3. Record the receipt of three months' interest at December 31. 1. Make Scotiabank's adjusting entry to accrue interest revenue and interest receivable at October 31, at November 30, and at December 31. Date each entry and include its explanation. (Record debits first, then credits. Enter explanations on the last line.) Start by making the adjusting entry to accrue monthly interest revenue for October. Date Oct Journal Entry Accounts and Explanation Debit CreditTangent Company borrowed $100,000 from the bank signing an 8%, 6-month note on September 1. Principal and interest are payable to the bank on March 1. If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on November 30, would be: A) debit Interest Expense, $8,000; credit Interest Payable, $8,000. B) debit Interest Expense, $667; credit Interest Payable, $667. C) No adjusting entry is needed on November 30. D) debit Interest Expense, $2,667; credit Interest Payable, $2,667.Coronado Music Store borrowed $33600 from the bank signing a 10%, 3-month note on September 1. Principal and interest are payable to the bank on December 1. If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on September 30, would be A) Debit Interest Expense, $280; Credit Interest Payable, $280. B) Debit Notes Payable, $3360; Credit Cash, $3360. C) Debit Cash, $840; Credit Interest Payable, $840. D) Debit Interest Expense, $3360; Credit Interest Payable, $3360.
- On December 1, Gilman Corporation borrowed $20,000 on a 90-day, 6% note. Prepare the entries to record the issuance of the note, the accrual of interest at year end, and the payment of the note. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit $11Concord Company borrows $52,800 on July 1 from the bank by signing a $52,800, 12%, one-year note payable. (a) Prepare the journal entry to record the proceeds of the note. (b) Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) No. Date Account Titles and Explanation Debit Credit (a) (b)Sylvestor Systems borrows $75,000 cash on May 15 by signing a 60-day, 7%, $75,000 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 Principal Rate (%) Time Total interest First, complete the table below to calculate the interest expense at maturity. (Use 360 days a year. Round final answers to the nearest whole dollar.) Required 2B General Journal Interest at Maturity
- Reed Co. had the following transactions (see below) during November and December of 2025. Requirements: 1. What amount of interest will Reed pay in 2025 (use 360 days in calculations as needed)? Record the journal entries for each of the transactions listed below. Record any necessary year-end adjusting journal entries for related to these transactions. Record the payment of the note in 2026. Transactions 1-Nov-25 Issued a note to the bank with the following terms. Interest and principal paid at maturity. Days 75 Interest Rate 5.00% Face Amount $ 75,000.00 1-Dec-25 Received $18,000 cash from a customer as an advanced payment for services to be provided and earned evenly for 1 year. 10-Dec-25 Made cash sales, not including sales tax) of $ 100,000.00 Cost of goods sold for these sales of 81,000.00 Associated sales tax rate is 6% 30-Dec-25 Paid the sales…On June 1, Swifty Company borrows $120,000 from First Bank on a 6-month, $120,000, 8% note. (a)Prepare the entry on June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) DateAccount Titles and ExplanationDebitCreditJune 1 (b)The parts of this question must be completed in order. This part will be available when you complete the part above. (c)The parts of this question must be completed in order. This part will be available when you complete the part above. (d)The parts of this question must be completed in order. This part will be available when you complete the part above.Bonita Company borrows $39,000 on July 1 from the bank by signing a $39,000, 8%, one-year note payable. (a) Prepare the journal entry to record the proceeds of the note. (b) Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
- Sylvestor Systems borrows $98,000 cash on May 15 by signing a 30-day, 7%, $98,000 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? 1-Record the issuance of the note. Interest at Maturity Principal Rate (%) Time Total interestSylvestor Systems borrows $51,000 cash on May 15 by signing a 120-day, 7%, $51,000 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 2B Interest at Maturity On what date does this note mature? Required 1 Required 2A On what date does this note mature? Required 2B General JournalOn June 1, Granulite Inc borrows $150,000 from the bank by signing a 2-month, 2.0% bank loan. Interest is due at the beginning of each month, starting July 1. InstructionsPrepare the entries listed associated with the bank loan. (a) Prepare the entry on June 1 when the loan was received.(b) Prepare any adjusting entries needed on June 30 to prepare financial statements.(c) Prepare the entry or entries required in July.(d) Prepare the entry to record repayment of the loan at maturity on August 1.