4. On December 31, 2019, Don accepted a note receivable from Mike's Builders for $1,000 as a good faith promise to pay for electrical engineering services rendered that week. The terms of the note are Face $1,000, Interest 7%, Due in 180 Days. Prepare Don's joumal entry for December 31, 2019. Debit $1,000 Credit Notes Receivable Accounts Receivable $1,000 (1,000 x 7% x 180/360) The total interest on the note Equals the face value of the note times the rate of interest times the number of days divided by 360. 5. Same facts as above. Prepare the journal entry for Don on March 31, 2020 (quarterly) pertaining to the note.

4. On December 31, 2019, Don accepted a note receivable from Mike's Builders for $1,000 as a good faith promise to pay for electrical engineering services rendered that week. The terms of the note are Face $1,000, Interest 7%, Due in 180 Days. Prepare Don's joumal entry for December 31, 2019. Debit $1,000 Credit Notes Receivable Accounts Receivable $1,000 (1,000 x 7% x 180/360) The total interest on the note Equals the face value of the note times the rate of interest times the number of days divided by 360. 5. Same facts as above. Prepare the journal entry for Don on March 31, 2020 (quarterly) pertaining to the note.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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and the last entry I need help with is "Record the repayment of the note at maturity." please
Rotel purchased merchandise from TechCom on October 17, 2019. TechCom accepted Rotel's $4,800, 90-day, 10% note as payment. TechCom has a December 31st year end. What entry should TechCom make on January 15, 2020 when the note is honoured? Multiple Choice Cash 4918.36 Interest Earned 19.73 Interest Receivable 98.63 Notes Receivable 4,800 Cash 4918.36 Interest Earned 98.63 Interest Receivable 19.73 Notes Receivable 4,800 Cash 4918.36 Notes Receivable 4918.36 Cash 4918.36 Interest Earned 118.36 Accounts Receivable 4,800 Cash 4918.36 Interest Earned 118.36 Notes Receivable 4,800 The Liccorish Pizza bought $5,000 worth of merchandise from TechCom and signed a 90-day, 10% promissory note for the $5,000. TechCom's journal entry to record the transaction is Multiple Choice Notes Receivable 5,125 Sales 5,125 Accounts…
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Marydale Products permits its customers to defer payment by giving personal notes instead of cash. All the notes bear interest and require the customer to pay the entire note in a single payment 6 months after issuance. Consider the following transactions, which describe Marydale’s experience with two such notes: a. On October 31, 2019, Marydale accepts a 6-month, 12% note from Customer A in lieu of a $4,800 cash payment for services provided that day. b. On February 28, 2020, Marydale accepts a 6-month, $3,000, 5% note from Customer B in lieu of a $3,000 cash payment for services provided on that day. c. On April 30, 2020, Customer A pays the entire note plus interest in cash. d. On August 31, 2020, Customer B pays the entire note plus interest in cash. Required: Prepare the necessary journal and adjusting entries required to record Transactions a through d in Marydale’s records.
On January 1, 2019, a company sells a piece of equipment for a list price of $260,000. It receives $30,000 and accepts a note receivable for the remainder. The balance due is on December 31, 2021, and the note pays an annual interest of 3% every December 31st. Required: Assuming the customer’s borrowing rate is 5%, prepare all journal entries for 2019 and 2020 under IFRS.
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Swifty Company had the following select transactions. Apr. 1, 2020 Accepted Goodwin Company’s 12-month, 14% note in settlement of a $63,000 account receivable. July 1, 2020 Loaned $65,000 cash to Thomas Slocombe on a 9-month, 12% note. Dec. 31, 2020 Accrued interest on all notes receivable. Apr. 1, 2021 Received principal plus interest on the Goodwin note. Apr. 1, 2021 Thomas Slocombe dishonored its note; Swifty expects it will eventually collect. Prepare journal entries to record the transactions. Swifty prepares adjusting entries once a year on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit choose a transaction date 4/1/207/1/2012/31/204/1/21 enter an account title enter a debit amount enter a credit amount…
Selkirk Company obtained a $24,000 note receivable from a customer on January 1, 2021. The note, along with interest at 8%, is due on July 1, 2021. On February 28, 2021, Selkirk discounted the note at Unionville Bank. The bank's discount rate is 10%. Required: Prepare the journal entries required on February 28, 2021, to accrue interest and to record the discounting for Selkirk. Assume that the discounting is accounted for as a sale. (do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). Tab 1) Record the accrued interest earned. Tab 2) Record the discounting of note receivable. Date General Journal Debit Credit February 28, 2021 ____________________________ ___________ ____________ _____________________________ ____________ ____________…
Ireland Corporation obtained a $62,000 note receivable from a customer on June 30, 2021. The note, along with interest at 5%, is due on June 30. 2022. On September 30, 2021, Ireland discounted the note at Cloverdale bank. The bank's discount rate is 8%. What amount of cash did. Ireland receive from Cloverdale Bank? Multiple Choice $58,094. $57,040. $62.775. < Prev 15 of 15 Next
Bramble Supply Co. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest except at December 31. How would I enter these into a journal? Nov. 1 Loaned $ 13,200 cash to Manny Lopez on a 12-month, 10% note. Dec. 11 Sold goods to Ralph Kremer, Inc., receiving a $ 24,750, 90-day, 8% note. 16 Received a $ 29,100, 180 day, 8% note in exchange for Joe Fernetti’s outstanding accounts receivable. 31 Accrued interest revenue on all notes receivable.