Agrico,inc., provide correct answer please give me general accounting Agrico, Inc., accepted a 10-month, 11% (annual rate),$4,400 note from one of its customers on May 15, 2016;interest is payable with the principal at maturity.Prepare the journal entry to record the interest earned byAgrico during its year ended December 31, 2016.

Step 1: Define Notes payableNotes payable are the obligations by the promisor in which the borrower…

Answered: Agrico, Inc., accepted a 10-month, 11%…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 24Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms...

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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.
Anderson Air is a customer of Handler Cleaning Operations. For Anderson Airs latest purchase on January 1, 2018, Handler Cleaning Operations issues a note with a principal amount of $1,255,000, 6% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Handler Cleaning Operations for the following transactions. A. Entry for note issuance B. Subsequent interest entry on December 31, 2018 C. Honored note entry at maturity on December 31, 2019
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
Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
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.
Greener Pastures Corporation borrowed $1,000,000 on November 1, 2015. The note carried a9 percent interest rate with the principal and interest payable on June 1, 2016. Show the accountingequation effects and prepare the journal entries for ( a ) the note issued on November 1 and ( b ) theinterest accrual on December 31.
On September 1, 2015, Newtown borrowed $250,000 from First National Bank, and signed a 9% note payable due in one year. Interest on the note is due at maturity. Required: Please show calculations Part a. Prepare the journal entry to record the borrowing transaction. Part b. Prepare the required adjusting entry on December 31, 2015. Part c. Prepare the journal entry to record the payment of the interest on September 1, 2016. Part d. Prepare the journal entry to record the payment of the note on September 1, 2016.
Blackwell Industries received a 120-day, 9% note for $180,000, dated August 10 from a customer on account. (Assume a 360-day year when calculating interest.) Required: (a) Determine the due date of the note. (b) Determine the maturity value of the note. (c) Journalize the entry to record the receipt of the payment of the note at maturity.* *Refer to the Chart of Accounts for exact wording of account titles.
Blue Spruce Corp. lends Dobson industries $ 60000 on August 1, 2017, accepting a 9-month, 6% interest note. If Blue Spruce Corp. accrued interest at its December 31, 2017 year-end, what entry must it make to record the collection of the note and interest at its maturity date? Cash 62700 Notes Receivable 60000 Interest Revenue 2700 Notes Receivable 60000 Interest Receivable 1500 Interest Revenue 1200 Cash 62700 Cash 62700 Notes Receivable 60000 Interest Receivable 1500 Interest Revenue 1200 Cash 62700 Notes Receivable 62700
On September 1, 2017, Brita Hawtof Company signed a $75,000, nine month, 6 percent note payable. The principal and interest was paid on the due date, May 31, 2018. Assuming Brita Hawtof Company’s accounting period ends on December 31, 2017, their journal entry made on May 31, 2018 would include: Debit to Interest Payable for $1,875 Debit to Interest Payable for $2,000 DebittoInterestExpensefor$2,500 DebittoInterestPayablefor$1,500 answer is D, explain with joural entries made on Dec 31 2017 and adjusting entries come May 21 2018.
On January 1, 2016, Nantucket Ferry borrowed $14,000,000 cash from BankOne and issued a four-year, $14,000,000, 6% note. Interest was payable annually on December 31. Prepare the journal entries for both firms to record interest at December 31, 2016.
Coldwell, Inc. issued a $100,000, 4-year, 10% note at face value to Flint Hills Bank on January 1, 2017, and received $100,000 cash. The note requires annual interest payments each December 31. Prepare Coldwell’s journal entries to record (a) the issuance of the note and (b) the December 31 interest payment.

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Agrico, Inc., accepted a 10-month, 11% (annual rate), $4,400 note from one of its customers on May 15, 2016; interest is payable with the principal at maturity. Prepare the journal entry to record the interest earned by Agrico during its year ended December 31, 2016.