Apex Corporation borrowed $1,800,000 on January 1, 2020. The note agreement specifies that it will pay interest quarterly at 4% on March 31, June 30, September 30 and December 31. The principal will be dueon December 31, 2025. The company's fiscal year ends on December 31. What journal entry will Apex Corporation make on January 1, 2020? What journal entry will Apex Corporation make at the end ofeach quarter? What journal entries will Apex Corporation make on December 31, 2025 (you can only record the maturity payment and ignore the journal entry to record the last interest payment since it is done inthe requirement 2) ?Prepare the journal entry that Apex Corporation will record on January 1, 2020. (Record debits first, then credits. Exclude explanations from any journal entries.)AccountJanuary 1, 2020Record the journal entry for interest expense at the end of each quarter through December 31, 2025.AccountMarch 31, 2020 (and everyquarter through December 31, 2025)Prepare the journal entry that Apex Corporation will record to pay off the note payable on December 31, 2025.AccountDecember 21 2025

Let's break down the problem step by step to understand how to fill in the journal entries.1.…

Answered: Apex Corporation borrowed $1,800,000 on…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 14EB: Anderson Air is a customer of Handler Cleaning Operations. For Anderson Airs latest purchase on...

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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
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 January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
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.
Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?
Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spaths incremental borrowing rate is 12%. The customer agrees to purchase an equal amount of inventory each year over the 5-year period so that a straight-line method of revenue recognition is appropriate. Required: Prepare the journal entries on Spaths books for 2019 and 2020. (Round answers to 2 decimal places.)
XYZ Company lent $9,000 at 10% interest on December 1, 2019. The amount plus all interests accrued will be collected after 1 year. At the end of December, which of the following journal entry is required to take up the interest income? Select one: a. Debit Cash $900; Credit Interest Revenue $900 b. Debit Interest Revenue $75; Credit Interest Receivable $75 c. Debit Interest Receivable $900; Credit Unearned Revenue $900 d. Debit Interest Receivable $75; Credit Interest Revenue $75
On August 1, 2021, Stucko Company borrowed $21,000 on an 8-month, 3%, short-term note payable. Which account will be credited on April 1, 2022, and for what amount? Stucko Company has a calendar year-end.
What amount of interest expense would the company report in 2020 For this accounting question?
On March 1, 2021, the company lent $20,400. The note required principal and interest at 9% be paid on February 28, 2022. What is the journal entry and the amount to enter into the journal?
Sayed Company borrowed $40,000 on August 31, 2020, by issuing an 9-month, 9% interest-bearing note. The company prepares its financial statement annually at the end of December. Maturity date is: April 1, 2020 May 1, 2020 June 1, 2020 July 1, 2020 None of the above The adjusting entry to record the accrued interest on December 31, 2020 is: * Debit Interest Expense and Credit Interest Payable for $1,200 Debit Interest Expense and Credit Interest Payable for $1,500 Debit Interest Expense and Credit Cash for $3,600 Debit Interest Expense and Credit Interest Payable for $2,700 None of the above O O
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