Amina borrowed 60,000 SR on January 1, 2020, from the local bank to expand its building. The funds were borrowed by signing a 98,000 SR , 12%, one-year note payable. 1. Prepare the entry to record the receipt of the funds on January 1, 2020. 2. Prep
Q: Notes payable-discount basis On May 15, 2022, Powell Inc. obtained a six-month working capital loan…
A: Current Liability Current liability are the short term obligations of a company that are due within…
Q: Kinsella Seed borrowed $207,000 on October 1, 2023, at 10% interest. The interest and principal are…
A: Journal entries are used to record the accounting transactions in chronological order under double…
Q: On January 1, 2021, Julee Enterprises borrows $30,000 to purchase a new Toyota Highlander by…
A: Journal entry for the issuance of notes payable:- Date General Journal Debit Credit Jan 01,…
Q: On May 1, 2025, Cullumber Company signed a one-year, zero - interest bearing note for $ 50300 and…
A: Lets understand the basics.Journal entry is required to make to record event and transaction that…
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: During the year ended December 31, SC engaged in the following transactions involving notes payable.…
A: Journal entries is recording the of the transaction in the accounting journal in a chronological…
Q: On December 1, Williams Company borrowed $50,000 cash from Second National Bank by signing a 90-day.…
A: Note payable is a form of debt taken by the company on which business has to pay interest on…
Q: Admire County Bank agrees to lend Swifty Brick Company $591000 on January 1. Swifty Brick Company…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: ty Incorporated normally borrows from a bank to finance their daily operations. Information about…
A: Under accrual basis , the expenses and revenues are to be recognized during the year when they are…
Q: 1 Assume that on July 1, 2021, General Mills bonowed $200,000 cash on a one-year note that required…
A: Notes payable: It implies to a written promise that is made by the maker of the note to other party…
Q: March 30 Loaned an officer of the company $30,000 and received a note requiring principal and…
A: Journal entries are the first step of accounting. All day to day transaction and events such as…
Q: What amount of the payment made on January 1, 2022 will be interest expense?
A: Amount Borrowed = $360000 Interest Rate = 4% Fixed Annual Payment = $32379 Interest to be paid on…
Q: On January 1, 2021, the Montgomery Company agreed to purchase a building by making six payments. The…
A: Cost of building: Annual payment PV Factor at 9% Present Value Year 1 $44,000 0.91743…
Q: 9 Dec. Borrowed $28,000 from the bank for personal use. The loan carried an interest rate of 6% a…
A: Lets understand the basics. When any borrowing is made by the person then interest and repayment is…
Q: On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $121,800 on December…
A: The promissory note is a kind of security issued by a business entity in order to raise fund. The…
Q: On January 1, 2018, King Inc. borrowed $190,000 and signed a 4-year, note payable with a 10%…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: On November 1, Koala Kare Bear signed a $50,000, 10-month, 10% interest-bearing note payable. The…
A: From November 1 to December 31 = 2 months According to accrual concept of accounting, expenses are…
Q: Red Robin borrowed money to purchase a vehicle this year for $47,210. The vehicle loan is an…
A: Journal entries are prepared to record the financial transactions in the accounting book. It is the…
Q: Fifty Incorporated normally borrows from a bank to finance their daily operations. Information about…
A: Cash basis of accounting is that basis of accounting under which all expenses paid in cash and all…
Q: Prepare journal entries for the following transactions that took place during the year, 2021: a.…
A: Journal entries are the basic method of recording financial transections. These are used to prepare…
Q: Q1)Zetix borrowed $20,000 on a one-year, 10 percent note payable from the local bank on March 1.…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 1. Joy’s Bar and Grill completed the following note-payable transactions: 2020 Aug. 1 Purchased…
A: Under accrual basis of accounting transactions are recorded as and when they occur irrespective of…
Q: On September 1, 2018, Mills Company borrowed $72000 cash on a one-year note that required Mills to…
A: Interest payable is the sum that a person or business owes a lender at a particular time but hasn't…
Q: a. Borrowed $20,000 cash on July 1, 2018, signing a 10 percent note payable. Interest and the note…
A: Note payable: A promissory note is also called as note payable. It is an agreement between two…
Q: Which journal entry below would be properly used to record an issuance of an installment note…
A: Notes payable are the negotiable instruments used for deferring payments. In this one-party agree to…
Q: Analyze and review the following items and determine the appropriate journal entry. Bank Loan…
A: Journal entries are the entries to be recorded in the accounting books of the business for all the…
Q: On January 1, 2018, King Inc. borrowed $190,000 and signed a 5-year, note payable with a 10%…
A: Note payable: The person borrows an amount and issue a note to the lender that he will pay the…
Q: 4. On December 31, 2019, Don accepted a note receivable from Mike's Builders for $1,000 as a good…
A: The accrued interest is the interest expense due for payment but not paid yet.
Q: Record the journal entry: Jack has $90,000 two-year note payable to first USA Bank and Trust, dated…
A: Here USA bank is the drawer and Jack is the drawee
Q: On Jan 1st, 2022, Saturn borrows $2,000,000 from Orange Bank and pledges $2,500,000 of its accounts…
A: Some banks allow to pledge a portion of accounts receivable as collateral to provide loan. In case…
Q: The company has a mortgage note payable for $1,500,000 that comes due in year 3. this note is paid…
A: Lets understand the basics. Journal entry is required to make to record event and transaction that…
Q: On july 1, 2021 I borrowed 50,000 with notes payable with an interest of 6 percent a year. The note…
A: Notes payable is a promissory note and a negotiable instrument. In this one party agreed to pay a…
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: On January 1, 2021, Beaver Tours financed the purchase of a new building by borrowing $600,000 from…
A: Journal: Recording of a business transactions in a chronological order.
Q: Dan Dayle started a business by issuing an $83,000 face value note to First State Bank on January 1,…
A: Interest is computed as per the following formula Interest=Principal*rate*term
Q: 2020 a. July 1 b. December 31 2021 c. July 1 d. July 1 Loaned $62,000 to employees of the company…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: On November 1, 2021, Aviation Training Corp. borrows $60,000 cash from Community Savings and Loan.…
A: Journal entry: It is prepared to record the financial and non-financial transaction of the…
Q: suance of the note. e first interest paymer
A: Answer : 1. Amortization table for first 3 moths : Period ending date Beginning balance(a) Debit…
Q: On January 1, 2018, King Inc. borrowed $190,000 and signed a 5- year, note payable with a 10%…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: On November 1, 2019, Provincial Importers loaned $10,000 cash to Clayton Schaffer on a one-year, 5…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Q: (b) Prepare the entry to accrue the interest on June 30. (List all debit entries before credit…
A: Journal Entry is the primary step to record the transaction in the books of accounts. The interest…
Q: he following transactions took place for Smart Solutions Inc. 2017 a. July 1…
A: Prepare journal entries in the books of Smart Solutions Inc.a. Record the money loaned to an…
Q: On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $121,500 on December…
A: Interest expense is the cost incurred for borrowing the fund. Interest is calculated on the…
Q: Q: Zetix borrowed $20,000 on a one-year, 10 percent note payable from the local bank on March 1.…
A: Amount of Cash Payment = Amount of Note Payable * Rate of Interest * 3 Months#/12 Months # Since…
Q: 4. Jill Hamlin borrowed $40,000 from the bank on August 16, issuing the bank a 12% note. The entry…
A: Introduction: Accrued interest on a loan refers to the interest that has accumulated on the…
Q: Travel borrowed $33,000 on September 1, 2018, by signing a one-year note payable to State One…
A: Given that, loan amount = $33000 date of borrowal = 1 Sep 2018 Interest payment for 3 months = $355
Q: On March 1. LGE asks to extend its past-due $9,200 account payable to Tyson. Tyson agrees to accept…
A: In accounting, the treatment of notes involves the recognition and management of financial…
Q: Analyze and review the following items and determine the appropriate journal entry. Notes Payable…
A: The last balance sheet is prepared on the date of December 31, 2020. Therefore, Accrued interest is…
Q: Prepare all journal entries and adjusting journal entries necessary to record all of Red Robin's…
A: Notes are also known as promissory notes which are a sort of debt instrument stating a promise to…
2- Amina borrowed 60,000 SR on January 1, 2020, from the local bank to expand its building. The funds were borrowed by signing a 98,000 SR , 12%, one-year note payable. 1. Prepare the entry to record the receipt of the funds on January 1, 2020. 2. Prepare the entry to accrue the interest on June 30, 2020. 3. Show the
Step by step
Solved in 2 steps with 2 images
- THREE FLAGS Co. borrowed $100,000 from the Bull Run Bank on September 1, 2018. The note earns interest at a rate of 12% and matures in six months on February 28, 2019. THREE FLAGS is supposed to pay off BOTH principal and interests on February 28, 2019. Both THREE FLAGS Co. and Bull Run Bank prepares their financial statements on December 31. Please provide Journal entries for THREE FLAGS Co. on the following dates: 9/1/2018 12/31/2018 2/28/2019 Please provide Journal entries for Bull Run Bank on the following dates: 9/1/2018 12/31/2018 2/28/2019South 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.Jane's Don't Company borrowed $201,000 on January 1, 2024, and signed a two-year note bearing interest at 13%. Interest is payable in full at maturity on January 1, 2026. In connection with this note, Jane's should report interest expense at December 31, 2024, in the amount of: Multiple Choice $55,396. $26,130. $52,260. $0.
- On May 15, 2022, Powell Incorporated obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $478,700. The interest rate charged by the bank was 6.75%. The bank made the loan on a discount basis. Exercise 7-7 (Algo) Part a - Journal entry a-3. Record the journal entry to show the effect of signing the note and the receipt of the cash proceeds on May 15, 2022. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.Question. Jamaica Corporation carried out the following transactions involving note payable. During the fiscal year ended December 31, 2020. Aug 6 Borrowed $ 15,200 from Tony Stark, issuing to him a 45 da, 14% note payable. Sept. 16 Purchased office equipment from Ikea Company. The invoice amount was $18,800 and Ikea Company agreed to accept as full payment a 3-month, 15% note for the invoice amount. Sept. 20 Paid Tony Stark note plus accrued interest. Nov.1 Borrowed $ 2,35,000 from Nation Commercial Bank at an interest rate of 12% per annum; signed a 90-days note payable for $ 2,42,256, which included a $7,056 interest charge in the face amount. Dec.1 Purchased merchandise in the amount of $13,000 from Stephens & Co. Gave in settlement a 60-day note nearing interest at 15% (Perpetual inventory system is deployed). Dec. 16 The $18,800 note payable to Ikea Company matured today. Paid the interest accrued and issued new 30-days, 12% note to replace the maturing…hi how do we record this in MYOB. Please help me Transactions from early January 2021 2 Obtained a loan of $14,000 from Uncle Oliver (a family relative of Beatrice Reed) at a simple interest rate of 10% per year, Cheque No. 145, ID #CR000001. The principal and interest on the loan are payable in six months time. 3 Received Cheque No. 227 from Pikea for the full amount outstanding on their account, ID #CR000002. 4 Issued Cheque No. 4098 for $10,065 to Mega Tech in payment of Purchase #303 (Supplier Inv#230). 4 Purchased 9 units MePod multimedia players from Pony at $979 each (includes 10% GST), Purchase #306, Supplier Inv#328. Issued Cheque No. 4099 for $3,900 to this supplier for this particular invoice at the time of the purchase. 4 Issued Cheque No. 4100 for $1,320 (includes 10% GST) to Discount Office Supplies for the cash purchase of office supplies. 6 Sold the following items on credit to Jerry Technology, Invoice #3284: 3 units BG90 plasma televisions for…
- E4-29 Mattson Loan Company completed these transactions: 2019 Apr. Dec. 2020 Apr. 1 Loaned $20,000 to Charlene Baker on a one-year, 5% note. 31 Accrued interest revenue on the Baker note. 1 Collected the maturity value of the note from Baker (principal plus interest). Show what Mattson would report for these transactions on its 2019 and 2020 balance sheets and income statements. Mattson's accounting year ends on December 31.The following transactions took place for Smart Solutions Inc. 2017 a. July 1 Loaned $65,000 to an employee of the company and received back a one-year, 10 percent note. b. Dec. 31 Accrued interest on the note. 2018 c. July 1 Received interest on the note. (No interest has been recorded since December 31.) d. July 1 Received principal on the note. Required: Prepare the journal entries that Smart Solutions Inc. would record for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 Record the receipt of a note on July 1, 2017 for a $65,000 loan to an employee. Note: Enter debits before credits. Date General Journal Debit Credit Jul 01, 2017On January 1, 2024, Evanston Corporation borrowed $7 million from a local bank to construct a new building over the next three years. The loan will be paid back in three equal installments of $2,570,460 on December 31 of each year. The payments include interest at a rate of 5%. Required: 1. Record the cash received when the note is issued. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answer in dollars, not millions (i.e., $5.5 million should be entered as 5,500,000).) View transaction list Journal entry worksheet < 1 Record the receipt of cash from the issue of the note payable. Note: Enter debits before credits. Date January 01, 2024 Cash Notos Davahin General Journal Debit Credit
- Gallery located in Maine produces journals and photo albums. On May 1, 2021, G borrowed $250,000 from Midwest One Bank by signing a three year, 6% note payable. Interest is due each May 1. How much, if any, should interest expense be debited for on Dec 31, 2021? Fill in the blank. Omit $ sign.On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $122,100 on December 31, 2022. The proceeds of the note were $115,800. Use the horizontal model to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2022. Indicate the financial statement effect. Use the horizontal model to show the effects of recording interest expense for the month of September. Indicate the financial statement effect. Use the horizontal model to show the effects of repaying the note on December 31, 2022. Indicate the financial statement effect.Following are transactions for Vitalo Company. November 1 Accepted a $5,000, 180-day, 5% note from Kelly White in granting a tine extension on her past-due account receivable. December 31 Adjusted the year-end accounts for the accrued interest earned on the White note.. April 30 white honored her note when presented for payment. Complete the table to calculate the interest amounts at December 31st and April 30th and use those calculated values to prepare your Journal entries. Note: Do not round intermediate calculations. Use 360 days a year.
