5. Nike has the following transactions related to notes receivable during the last two months of 2008: 1-Nov Loaned $18,000 cash to Under Armour on a one-year, 10% note 11-Dec Sold goods to Dwayne Johnson receiving a $6,750, ninety-day, 8% note 16-Dec Received a S4,000, 6-month, 9% note in exchange for Bob Shabo's outstanding accounts receivable 31-Dec Accrued interest revenue on all notes receivable (= record all interest expense and interest payables that have occurred to this day Instructions: (a) Journalize the transactions for Nike (b) Record the collection of the Under Armour note at its maturity in 2009

5. Nike has the following transactions related to notes receivable during the last two months of 2008: 1-Nov Loaned $18,000 cash to Under Armour on a one-year, 10% note 11-Dec Sold goods to Dwayne Johnson receiving a $6,750, ninety-day, 8% note 16-Dec Received a S4,000, 6-month, 9% note in exchange for Bob Shabo's outstanding accounts receivable 31-Dec Accrued interest revenue on all notes receivable (= record all interest expense and interest payables that have occurred to this day Instructions: (a) Journalize the transactions for Nike (b) Record the collection of the Under Armour note at its maturity in 2009

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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Assuming a 360-day year, proceeds of $43,722 were received from discounting a $44,958, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was O a. 12.24% b. 11.00% c. 9% Od. 12.75%
4. Jill Hamlin borrowed $40,000 from the bank on August 16, issuing the bank a 12% note. The entry to record accrued interest on the note on August 31 (15 days later) would include: a . debit Interest Expense for $197.26 b. debit Interest Payable for $197.26 c. credit Interest Expense for $407.67 d. credit Interest Payable for $407.67 d. debit Cash for $18,000
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Assuming a 360-day year, proceeds of $45,552 were received from discounting a $46,830, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was а. 12.16% b. 12.67% C. 8.92% Od. 10.92%
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Subject: accounting
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