.On March 1, 20X1, ABC Corp received a 12% note dated Jan 1, 20X1. The principal and interest is due after 3 years. On initial recognition, which of the following accounts increased? Prepaid interest Interest receivable Unearned interest income Interest revenue

.On March 1, 20X1, ABC Corp received a 12% note dated Jan 1, 20X1. The principal and interest is due after 3 years. On initial recognition, which of the following accounts increased? Prepaid interest Interest receivable Unearned interest income Interest revenue

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: • Assume Strand Corp borrowed $200,000 from the bank on 7/1/20; Strand is a calendar year-end.…

A: Journal entry on 07/1/20 , 12 /31/ 20 are as follows

Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 6%, on a 90-day,…

A: Interest charged by the bank -Interest is still calculated as Principal x Interest x Frequency of…

Q: Prepare an amortization table showing the principal and interest in each payment.

A: Interest calculation : Outstanding principal amount * rate of interest Year 1 = $58,000 * 4%…

Q: Compute the maturity date and interest for the following notes. (Use 360 days for calculation.)…

A: The term "maturity date" describes the date on which an investor must receive their capital back…

Q: On January 1, Year 1, Beatie Company borrowed $320,000 cash from Central Bank by issuing a…

A: NOTES PAYABLE Notes Payable is a long-term liabilities that indicate the money a company owes from…

Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 7%, on a 90-day,…

A: Notes payable is a financial instrument used to raise funds for financial obligations. Interest is…

Q: 1-Jan Janus Corp. lent $66, 116 to Jeeter Company, accepting Jeeter's 2 year, $80,000 Date Account…

A: Interest bearing notes:These notes have a stated rate of interest that is payable in addition to the…

Q: Halep Inc. borrowed $54,000 from Davis Bank and signed a 4-year note payable stating the interest…

A: Given: Period = 4 years Payment = $14,876.46 Loan = $54,000 Interest rate = 4%

Q: calculate the accrued interest for the following notes (round to two decimal places, if necessary).…

Q: • Assume Strand Corp borrowed $200,000 from the bank on 7/1/20; Strand is a calendar year-end.…

A: It is pertinent to note that under the accrual basis of accounting transactions are recorded as and…

Q: NYJ, Inc. borrowed $500,000 on November 1, 20X1, and signed a nine-month note bearing interest at…

A: The notes payable require the borrower company to pay interest expense. The interest expense is…

Q: Complete the following without using Table12.1. Note: Round the "Total amount" and "Total interest"…

A: The question is based on the concept of Financial Management. Amount is the sum of the interest and…

Q: A partial amortization schedule for a 5-year note payable that Mabry Company issued on January 1,…

A: Cash flow statement includes: Cash flows from operating activities Cash flows from investing…

Q: 1) On October 1, 20x1, Metro Bank loaned $8,000,000 and received a 5-month promissory note with 10%…

A: Note is kind of instrument which are commonly used by the lender and borrower at the time of giving…

Q: How do I find the carrying amout for each year?

A: Requirement a: Prepare an amortization table.

Q: Determine the due date and the amount of interest due at maturity on the following notes: Face…

A: For the calculation of Due date - The number of days are counted from the date of note.Interest =…

Q: Subject : Accounting On January 1, Boston Company completed the following transactions (use a 7%…

A: PV is the way of calculating the present value of cash flows arising in the future present value of…

Q: On February 20th, a 5 month note for $3,700 was received by Lucky Company to settle an amount owing…

A: Interest is a amount which is paid by a borrower to the person from the money has been taken by him…

Q: 5. On July 8, Alton Co. issued an $80,000, 6%, 120-day note payable to Seller Co. Assame tht t…

Q: You are told that a note has repayment terms of $1,150 per quarter for 4 years, with a stated…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: Company borrowed $5,000 on October 1, Year 1. The note had a one-year term and an annual interest…

A: Lets understand the basics.Adjusting entry is having three types which are,(1) Accruals(2)…

Q: ABC Company borrows $497,000 from the bank at 7% for a three year period on Jan. 01. The loan will…

A: As per IFRS 9 Financial instruments, Borrowing from bank will be considered as Financial liability…

Q: Complete the following without using Table 19.1. (Round the "Total amount" and "Total interest to…

A: The concept of time value of money will be used and applied here. Money invested or deposited today…

Q: On September 1, Sault Inc. incurs a $120,000 debt. Arrangements are made to pay this debt in three…

A: When charges such as interest and the partly principal repayment for a borrowing takes place once in…

Q: Compute interest and find the maturity date for the following notes. (a) date of note: June 10…

A: The Interest on a note is calculated by multiplying the face value of the note with the rate of…

Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

11.On March 1, 20X1, ABC Corp received a 12% note dated Jan 1, 20X1. The principal and interest is due after 3 years. On initial recognition, which of the following accounts increased?

Prepaid interest

Interest receivable

Unearned interest income

Interest revenue

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

On September 1, Year 1, West Company borrowed $34,000 from Valley Bank. West agreed to pay interest annually at the rate of 9% per year. The note issued by West carried an 18-month term. West Company has a calendar year-end. What is the amount of interest expense that will be reported on West's income statement for Year 1? Multiple Choice O O $-0- $1,020 $306 $765
1.
E10-3A Accrued Interest Payable Compute the interest accrued on each of the following notes payable owed by Northland, Inc., on December 31: Lender Date of Note Principal Interest Rate Term Maple 11/21 $18,000 11% 120 day Wyman 12/13 14,000 8 90 days Nahn 12/10 16,000 12 60 days
14. Gingerbread Corp was issued a $220,000 loan at 6%. The amortization schedule created by the company accountant is presented below. How much interest will Gingerbread Corp record in interest expense over a period of 6 years?
118. Subject :- Accounting
Assuming a 360-day year, the interest charged by the bank, at the rate of 8%, on a 90-day, discounted note payable of $105,987 is a.$4,240 b.$8,479 c.$2,120 d.$105,987
A bank customer borrows X at an annual effective rate of 12.5% and makes level payments at the end of each year for n years. (i) The interest portion of the final payment is 153.86. (ii) The total principal repaid as of time (n − 1) is 6009.12. (iii) The principal repaid in the first payment is Y. Calculate Y. OA. 500 OB. 470 O C. 480 O D. 490 OE. 510
NYJ, Inc. borrowed $800,000 on July 1, 20X1, and signed a ten-month note bearing interest at 5%. Principal and interest are payable in full at maturity. In connection with this note, NYJ, Inc. should record interest expense in 20X2 in the amount of:
104.
Halep Inc. borrowed $36,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $9,917.64 at the end of each year. Prepare an amortization table showing the principal and interest in each payment. Round your answers to two decimal places. Year BeginningBalance Payment Interest To Principal EndingBalance 1 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 $fill in the blank 5 2 fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 fill in the blank 10 3 fill in the blank 11 fill in the blank 12 fill in the blank 13 fill in the blank 14 fill in the blank 15 4 fill in the blank 16 fill in the blank 17 fill in the blank 18 fill in the blank 19 fill in the blank 20
3. On January 1, Esly Company obtained a $125,000, 7-year 5% installment note from Farmers Bank. The note requires annual payments of $21,602, with the first payment occurring on the last day of the fiscal year. (a) Prepare an amortization schedule for Year 1 and Year 2 Date January 1 carrying amount Note payment Interest expense Decrease in Notes payable (b) Journalize the following entries: a. Issued the installment notes for cash on January 1. Dec 31 carrying amount