1) On October 1, 20x1, Metro Bank loaned $8,000,000 and received a 5-month promissory note with 10% interest payable at maturity. Metro's fiscal year ends on December 31. (2) Metro recorded accrued interest on December 31, 20x1. (3) Metro received the promissory note on the March 1, 20x2 due date. Required: prepare the appropriate journal entries.

1) On October 1, 20x1, Metro Bank loaned $8,000,000 and received a 5-month promissory note with 10% interest payable at maturity. Metro's fiscal year ends on December 31. (2) Metro recorded accrued interest on December 31, 20x1. (3) Metro received the promissory note on the March 1, 20x2 due date. Required: prepare the appropriate journal entries.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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On the first day of the fiscal year, a company issues $32,000, 11%, five-year installment notes that have annual payments of $8,658. The first note payment consists of $3,520 of interest and $5,138 of principal repayment. Question Content Area a. Journalize the entry to record the issuance of the installment notes. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - Question Content Area b. Journalize the first annual note payment. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - - Select - - Select - Adieu Company reported the following current assets and current liabilities for two recent years: Dec. 31, 20Y4 Dec. 31, 20Y3 Cash $1,020 $960 Temporary investments 1,200 1,400 Accounts receivable 820 940 Inventory 2,200 2,600 Accounts payable 1,900 2,200 a.…