Adjusting entries
Q: Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of…
A: Step 1:Step 2:Step 3:Step 4:
Q: 1. Costco Wholesale Corporation borrows $640,000 on September 1, 2021. Costco signs a nine- month,…
A: Formula: Interest amount = Notes payable amount x Time period x Interest rate.
Q: On November 12, 2021, Jones Corporation borrows money at James National Bank by issuing a $10,000, 3…
A: Effective annual interest rate = Interest / ( Proceeds x Time ) Given that: Discounted = 12% Basis…
Q: On September 1, 2021, Allied Moving Corp. borrows $90,000 cash from First National Bank. Allied…
A: In this question, we need to record the issue of notes payable. By issue of notes payable, the…
Q: MCM Company issued a note receivable to a customer on September 1, 2020. The face value of the note…
A: Note receivable is considered as a negotiable instrument. It represents the claim amount due on the…
Q: Assume Delta Airlines borrows $500,000 from Chase Bank on November 1, 2021, signing a 9%, six-month…
A:
Q: Patrick Trash Haulers borrowed 42,000 on June 1, 2020. The loan had an interest rate of 5%. The…
A: Notes payable are promissory notes and negotiable instruments. In this one party agrees to pay a…
Q: On January 1, $38,000 cash is borrowed from a bank in return for a 12% installment note with 36…
A: Given information Notes payable = $38,000 Monthly payment = $1262 Duration = 36 months Interest =…
Q: On October 12, 2020, Golf Co. received from one of its customers, Ping Co., a $30,500, 8% 90 day…
A: Interest accrued on December 31, 2020 = Face value of note x interest rate x no. of days/360 =…
Q: On November 1, 2021, Ayayai Corp, which uses a calendar year as its fiscal year, signs a $28200, 8%,…
A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…
Q: On November 1, 2018, A-1 Products borrowed $64,000 on a 5%, 5-year note with annual installment…
A: Loan Installment is that amount which is paid by the borrower to lender. It includes the interest…
Q: Prepare journal entry for Windsor, Inc. to record the receipt of the proceeds of the note. Prepare…
A: Solution:- Given, Windsor, Inc. borrows $67,200 from Wildhorse Co. Signing a 4%, one-year note…
Q: b. On September 1, 2019 the Robbem Co. received a $30,000 note receivable from a customer in…
A: December 31, 2019 = Face value of note x rate of interest x No. of months / 12 = $30,000 x 12% x…
Q: On January 1, 2024, Lechner Company borrowed $120,000 on a 4%, 5-year note with annual installment…
A: A note payable is one of the instruments used by a company to acquire more funds from the market for…
Q: On May 1, 2020, Zachary Corporation borrowed $2,500 on a two-year, 6% note payable. Interest is due…
A: The company borrowed amount on the dated May 1, 2020. Interest will be payable after six months.…
Q: On October 1, 2023, Corporation 1 issued a $100,000 note payable to Corporation 2. The note carries…
A: Note receivable refers to a written promise for the amounts to be received within a stipulated…
Q: amount of interest to be recorded
A: Interest on note receivable = Amount of note receivable * Interest rate * Months of maturity/12…
Q: Prepare journal entry On 3/1/2020, $30,000 cash was borrowed on a two-year 8% note payable.…
A: Calculation of Interest to be accrued at year end =Principal x interest rate x time/12 = 30000…
Q: note and interest at its maturity date? Cash 45144 Notes Receivable 43200 Interest Revenue 1944 O…
A: calculation Interest Revenue = 43,200 x 6% x 9 /12 = 1,944 Cash = Notes receivable + Interest…
Q: On November 1, 2019, Edwin Inc. borrowed cash and signed a $60,000, 1-year note payable.…
A: Every business transaction should indeed be documented in at least two locations, according to the…
Q: How do I find the carrying amout for each year?
A: Requirement a: Prepare an amortization table.
Q: 2. On July 1, 2019, XYZ Co. borrowed P2,000,000 and İssued a one-year promissory note. The lender…
A: The notes payable is an agreement where the borrower promises to pay interest and principal at…
Q: Delta took out a one year, 8% $100,000 loan on March 31, 2021. Interest is due upon maturity of the…
A: The adjustment entries are prepared to adjust the revenues and expenses of the current period.
Q: On 1st July 2020 Star LLC has accepted a note receivable for RO 2000 from one of the accounts…
A: Interest on note receivable shall be calculated from date of issuance till date of maturity.
Q: On January 1, 2024, Royal Paradise borrows $42,000 by agreeing to a 5%, four-year note with the…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: on october 1, 2019, Island Jewelry company accepted a 4 -month, 10% note fot $2,400 in settlement of…
A: Note Receivable: A note receivable is a written agreement or promise to receive a specific amount of…
Q: n November 12, 2021, Jones Corporation borrows money at James National Bank by issuing a $10,000, 3…
A: Journal entry is the process of documenting commercial transactions for the first time in the books…
Q: the pita pit borrowed 197000 on november 1 2021 and signed a six month note bearing interest at 12%.…
A: Interest expense = Principal amount x Interest rate x Time period
Q: Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: The following selected transactions relate to liabilities of United Insulation Corporation. United’s…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms…
A: NOTES PAYABLE Notes Payable is a Short Term Loan. Notes Payable are reported under the Non Current…
Q: Keesha Co. borrows $100,000 cash on November 1 of the current year by signing a 150-day, 10%,…
A: Notes Payable: Known as long-term obligations, notes payable represent the money a firm owes to its…
Q: ABC Company received a ten-month, $18,000, 4% note from XYZ Corporation on April 1, 2020 to replace…
A: Formula: Interest amount = Principal amount xx interest rate Multiplying principal amount with…
Q: On Sept 1, 2021, Firm A issued a 9-month, 12% promissory note in exchange for cash of $240,000.…
A: In this question, we need to pass journal entry for: Issuance of Notes. Adjusting entry for accrual…
Q: prepare a three-year (monthly) amortization schedule to classify the notes payable into its current…
A: Company has bought the office equipment for $15,000 but that purchase has been made through the…
Q: Alaska Inc. borrowed $16,000 by signing a one-year note payable on November 1, 2020. The note bears…
A: Journal: Recording of a business transactions in a chronological order.
Q: On April 1, Ringo Company borrowed $20,000 from its bank by issuing a 9%, 12-month note, with the…
A: Under such type of loan arrangement as in the given case, the borrower obtains certain amount of…
Q: On January 1, 2021, CPS Co. borrowed $340,000 cash from iLend and issued a five-year $340,000, 4%…
A: Interest Expense: The cost of debt which is incurred during a particular accounting period is called…
Q: Sayed Company borrowed $40,000 on August 31, 2020, by issuing an 9-month, 9% interest-bearing note.…
A: Given, Interest rate = 9% Issuing Date = 31st August 2020 Borrowing Amount = $40,000
Q: On November 1, 2023, Tommy Tunes accepted a $15,200, 6-month, 4% note from customer Tammy Notune.…
A: Notes receivable refers to a written, unconditional promise made by an individual or business to pay…
Q: Ellsworth Enterprises borrowed $486,000 on an 12%, interest-bearing note on September 30, 2020.…
A: Since the fiscal year-end on December 31, so adjusting entry for the interest for three months from…
Q: Required: the adjusting entry on December 31, 2020, will show a credit to interest payable for...
A: Adjusting entry: Adjusting journal entry is made at the end of the fiscal period to reflect the…
Q: Adjusting journal entry for: On November 1st, 2018, FTS purchased a certificate of deposit from…
A: In the given situation, assuming that the financial year ends on 31st December, for 2018 we need to…
Q: On November 30, 2020, James Co. lent money to Scott Co. and issued a 5-month, $120,000, 8% mote…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Prepare the
1. Borrowed 100,000 by issuing a 1-year note with 7% annual interest to century savings bank on Oct. 1.2021.
2. Invested 90,000 cash in a certificate of deposit that paid 4% annual interest . The certificate was acquired on May 1 and carried a 1-year term to maturity.
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- 26 )Philip Company has a P200,000, 9%, 120-day note receivable outstanding on December 31. The note is dated November 1, 2021. What is the adjusting entry on December 31, 2021?On April 1, Ringo Company borrowed $20,000 from its bank by issuing a 9%, 12-month note, with the interest to be paid on the maturity date. Prepare journal entries to record the issuance of the note and the related year-end adjusting entry on December 31.
- LARA Company secured a bank loan of $ 90,000, on 1/4/2020. In return, it signed a 10 month, 6%, note payable. LARA Co. closes its accounts annually, on December 31 of every year. The loan and total interest are to be paid to the bank at the end of the loan term. Required: the adjusting entry on December 31, 2020, will show a credit to interest payable for.Lewis Company had the following transactions involving notes payable. July 01, 2022 ... Borrows $50,000 from First Bank signing a 9-month, 8% note. Nov 01, 2022 ... Borrows $60,000 from Lyon Bank signing a 3-month, 6% note. Dec 31, 2022 ... Prepares annual adjusting entries. Feb 01, 2023... Pays principal and interest to Lyon Bank. Apr 01, 2023... Pays principal and interest to First National Bank. July 01 2022 Nov 01 2022 Dec 31 2022 Feb 01 2023 Apr 01 2023 On day note is created - is there interest exp? Or just the principal? DR 8% int $ DR 6% int $ CR Total $ 2 diff entries! A single CR to for each entry. Each entry pays note principal (can't be more), PLUS interest (and any publ from adj). Interest calc: Principal x Interest % = a full years int exp. BUT, notes often less than a full year. "Term" (length) of the note tells how many of the 12 months (or 365 days) apply. Eliminate any Int Pobl if ADJ were needed cuz some INT EXP is 2022, and some is 2023.1.Suppose, on September1, 2019 Fido Corporation borrows $30,000 from its bank for a period of 8 months at an annual interest rate of 5%. Please do the following journal entries. a) September 1, 2019 Fido corporation borrows $30,000 at an interest rate of 5% for 8 months Date Debit Credit Db Cr b) Adjustment entry at year end on December 31. 2019 to record for the interest owed. Date Debit Credit Db Cr c) Payment of the note on May 1, 2020. Date Debit Credit Db Cr
- On 1st Sept 2020 Sun and sand LLC has accepted a note receivable for RO 2000 from one of the accounts receivables. The maturity period is 120 days. The interest rate is 12%. The amount of interest to be recorded in account on 31 December will be a. RO 80 b. RO 78.9 c. RO 81.35 d. RO 76South Company borrows $88,500 on September1, 2019, from State Bank by signing an $88,500, 12%, one-year note. What is the accrued interest at December 31, 2019? Select one: a. $4,425. b. $10,620 C. $3,540. d. $2,655.On December 1, 2021, a company converted an existing account receivable in the amount of $6,000 to a note receivable to allow an extended payment period. The note is due in three months and includes an annual interest rate of 9%. The company prepares year-end financial statements on December 31 and recorded adjusting entries at that time. What entry should the company make on March 1, 2022, when the interest is paid at maturity? Multiple Choice Debit Cash and credit Notes Receivable for $6,135. Debit Cash for $6,135, credit Notes Receivable for $6,000, and credit Interest Revenue for $135. Debit Cash for $135 and credit Interest Revenue for $135. О Debit Cash for $135, credit Interest Receivable for $45, and credit Interest Revenue for $90.
- Flounder, Inc. issued a $115,000, 4-year, 12% note at face value to Flint Hills Bank on January 1, 2025, and received $115,000 cash. The note requires annual interest payments each December 31. Prepare Flounder's journal entries to record (a) the issuance of the note and (b) the December 31 interest payment.Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of $51,800 in its bank account. The note has a 3-year term, compounds 5 percent interest annually, and requires an annual installment payment on December 31. Cucina Corporation has a December 31 year-end and adjusts its accounts only at year-end. Required: 1. Use an online application, such as the loan calculator with annual payments at mycalculators.com, to complete the amortization schedule. 2. Prepare the journal entries on (a) January 1, 2021, and December 31 of (b) 2021, (c) 2022, and (d) 2023. 3. If Cucina Corporation's year-end were March 31, rather than December 31, prepare the adjusting journal entry it would make for this note on March 31, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Use an online application, such as the loan calculator with annual payments at mycalculators.com, to complete the amortization schedule. (Do…At December 31, 2021, Sheridan Company had a five-month, 5%, $79,200 note receivable that was issued on October 1, 2021. Interest and principal are payable at maturity on March 1, 2022. Prepare the March 1, 2022, entry to record the receipt of cash at maturity for the note
