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 isOOCashInterest ExpenseNotes PayableCashNotes PayableInterest ExpenseCashNotes PayableCashInterest ExpenseNotes PayableInterest Payable59100035460591000354605555405910003546062646059100059100059100035460

Journal Entry :— It is an act of recording transactions in books of account when transaction…

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 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

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 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

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

See similar textbooks

Similar questions

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. 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.
On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
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.
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:
JOURNAL ENTRIES (NOTE ISSUED FOR BANK LOAN) Prepare general journal entries for the following transactions: Sept. 15 Borrowed 7,000 cash from the bank, giving a 60-day non- interest- bearing note. The note is discounted 8 % by the bank. Nov. 14 Paid the 7,000 note, recognizing the discount as interest expense.
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?
Notes Receivable On September 1, 2016, Dougherty Corp. accepted a six-month, 7%, $45,000 interest-bearing note from Rozelle Company in payment of an account receivable. Doughertys year-end is December 31. Rozelle paid the note and interest on the due date. Required Who is the maker and who is the payee of the note? What is the maturity date of the note? Prepare all necessary journal entries that Dougherty needs to make in connection with this note.
Grayson Bank agrees to lend the Trust Company $98,759 on January 1. Trust Company signs a $98,759, 8%, 9-month, interest-bearing note. The entry made by Trust Company on January 1 to record the proceeds and issuance of the note is: Select the correct answer. A. Interest Expense$5,926 Cash$92,833 Notes Payable$98,759 B. Cash$107,648 Interest Expense$5,926 Notes Payable$98,759 Interest Payable$2,963 C. Cash$104,685 Interest Expense$5,926 Notes Payable$98,759 D. Cash$98,759 Notes Payable$98,759
Taylor Bank lends Guarantee Company $111,942 on January 1. Guarantee Company signs a $111,942, 8%, 9-month, interest-bearing note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is a. Cash 111,942 Notes Payable 111,942 b. Notes Payable 111,942 Interest Payable 3,359 Cash 111,942 Interest Expense 3,359 c. Cash 118,659 Interest Expense 6,717 Notes Payable 111,942 d. Interest Expense 6,717 Cash 105,225 Notes Payable 111,942
Taylor Bank lends Guarantee Company $112,834 on January 1. Guarantee Company signs a $112,834, 10%, 9-month, interest-bearing note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is a. Interest Expense 8,463 Cash 104,371 Notes Payable 112,834 b. Cash 112,834 Notes Payable 112,834 c. Cash 121,297 Interest Expense 8,463 Notes Payable 112,834 d. Notes Payable 112,834 Interest Payable 4,232 Cash 112,834 Interest Expense 4,232m
Taylor Bank lends Guarantee Company $100,137 on January 1. Guarantee Company signs a $100,137, 12%, 9-month, interest-bearing note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is Oa. Notes Payable 100,137 Interest Payable 4,506 Cash 100,137 Interest Expense 4,506 Ob. Interest Expense 9,012 Cash 91,125 Notes Payable 100,137 Oc. Cash 109,149 Interest Expense 9,012 Notes Payable 100,137 Od. Cash 100,137 Notes Payable 100,137 Previous Next