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 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....

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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.
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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
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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