Admire County Bank agrees to lend Crane Brick Company $590000 on January 1. Crane Brick Company signs a $590000, 6%, 9- month note. The entry made by Crane Brick Company on January 1 to record the proceeds and issuance of the note is Cash 590000 Interest Expense 26550 Notes Payable 590000 Interest Payable 26550 Cash 590000 Interest Expense 26550 Notes Payable 616550 Cash 590000 Notes Payable 590000 Interest Expense 26550 Cash 563450 Notes Payable 590000

Admire County Bank agrees to lend Crane Brick Company $590000 on January 1. Crane Brick Company signs a $590000, 6%, 9- month note. The entry made by Crane Brick Company on January 1 to record the proceeds and issuance of the note is Cash 590000 Interest Expense 26550 Notes Payable 590000 Interest Payable 26550 Cash 590000 Interest Expense 26550 Notes Payable 616550 Cash 590000 Notes Payable 590000 Interest Expense 26550 Cash 563450 Notes Payable 590000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
Entries for installment note transactions On January 1, 20Y2, Hebron Company issued a 175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual payments of 43,830, beginning on December 31, 20Y2. Journalize the entries to record the following:
Arvan Patel is a customer of Banks Hardware Store. For Mr. Patels latest purchase on January 1, 2018, Banks Hardware issues a note with a principal amount of $480,000, 13% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Banks Hardware Store for the following transactions. A. Note issuance B. Subsequent interest entry on December 31, 2018 C. Honored note entry at maturity on December 31, 2019.
Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
Non-Interest-Bearing Notes Payable On November 16, 2019, Clear Glass Company borrowed 20,000 from First American Bank by issuing a 90-day, non-interest-bearing note. The bank discounted this note at 12% and remitted the difference to Clear Glass. Required: 1. Prepare the journal entries of Clear Glass to record the preceding information, the related calendar year-end adjusting entry, and payment of the note at maturity. 2. Show how the preceding items Would be reported on the December 31, 2019, balance sheet. 3. Next Level What is Clear Glass Companys effective interest rate?
Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
Admire County Bank agrees to lend Swifty Brick Company $591000 on January 1. Swifty Brick Company signs a $591000, 8%, 9- month note. The entry made by Swifty Brick Company on January 1 to record the proceeds and issuance of the note is O O Cash Interest Expense Notes Payable Cash Notes Payable Interest Expense Cash Notes Payable Cash Interest Expense Notes Payable Interest Payable 591000 35460 591000 35460 555540 591000 35460 626460 591000 591000 591000 35460
Moss County Bank agrees to lend the Pharoah Company $395000 on January 1. Pharoah Company signs a $395000, 6%, 9-month note. The entry made by Pharoah Company on January 1 to record the proceeds and issuance of the note is Cash 395000 Interest Expense 17775      Notes Payable 412775 Cash 395000 Interest Expense 17775      Notes Payable 395000      Interest Payable 17775 Cash 395000      Notes Payable 395000 Interest Expense 17775 Cash 377225      Notes Payable 395000
Moss County Bank agrees to lend the Blossom Company $320000 on January 1. Blossom Company signs a $320000, 6%, 9-month note. The entry made by Blossom Company on January 1 to record the proceeds and issuance of the note is Cash 320000 Interest Expense 14400      Notes Payable 320000      Interest Payable 14400 Cash 320000 Interest Expense 14400      Notes Payable 334400 Interest Expense 14400 Cash 305600      Notes Payable 320000 Cash 320000      Notes Payable 320000 Save for Later
West County Bank agrees to lend Cullumber Company $280000 on January 1. Cullumber Company signs a $280000, 6%, 6-month note. The entry made by Cullumber Company on January 1 to record the proceeds and issuance of the note is Interest Expense 4200 Cash 275800      Notes Payable 280000 Cash 280000 Interest Expense 8400      Notes Payable 288400 Cash 280000      Notes Payable 280000 Cash 280000 Interest Expense 8400      Notes Payable 280000      Interest Payable 8400