Knowledge Check 01edAssume that Pope Enterprises held a $10,000, 10 percent six-month note signed by Mary Drevdon December 1 2019 the maturitydate, Drew dishonored the note. At this point, Drew owes a total of $10,500, which is comprised of the principel of S10.000 plusinterest in the amount of $500 (or $10,000 - 10% 6/12).bokPrepare the December 1entry for Pope by selecting the account names from the drop-down menus and entering the dollar amounts inthe debit or credit columns. If there are multiple debits or multiple credits, please enter the account sties in alphabetical orderintences

At the maturity date i.e. December 1, 2019, the maker i.e. Drew is responsible for the principal…

Assume that Pope Enterprises held a S10.000, 10 percent six-month note signed by Mery Drevdon December 1 2019 the meturity date. Drew dishonored the note. At this point. Drew owes a total of $10.500 which is comprised of the principel of S10.000 plus interest in the amount of $500 (or $10.,000 - 10% - 6/12). Prepare the December 1 entry for Pope by selecting the account names from the drop-down menus and entering the dolar amounts in the debit or credit columns. If there are multiple debits or multiple credits, please enter the account sties in alphabetical order

Assume that Pope Enterprises held a S10.000, 10 percent six-month note signed by Mery Drevdon December 1 2019 the meturity date. Drew dishonored the note. At this point. Drew owes a total of $10.500 which is comprised of the principel of S10.000 plus interest in the amount of $500 (or $10.,000 - 10% - 6/12). Prepare the December 1 entry for Pope by selecting the account names from the drop-down menus and entering the dolar amounts in the debit or credit columns. If there are multiple debits or multiple credits, please enter the account sties in alphabetical order

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Answer the following
Is my journal entry correct re: the following line item? March 6: Mr. Burns collected $30,000 of the 1/1/2020 balance of the note receivable from Mayor Quimby. The interest rate was 15% and the Note was written on July 1th, 2019 6-Mar Cash $ 32,250 Interest Income $ 2,250 Notes Receivable- Mayor Quimby $ 30,000
On March 1. LGE asks to extend its past-due $9,200 account payable to Tyson. Tyson agrees to accept $2,200 cash and a 180 day. 8% $7,000 note payable to replace the account payable. Note: Use 360 days a year. (0) Prepare the March 1 entry for LGE. (2) Prepare the August 28 entry for LGE when it pays the note and interest to Tyson. Please use the picture and insert where the answers go!!
The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1 Dec. 16 Accepted a $10,700, 60-day, 8% note in granting Danny Todd a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Todd note. Year 2 Feb. 14 Received Todd’s payment of principal and interest on the note dated December 16. Mar. 2 Accepted a(n) $6,600, 8%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co. 17 Accepted a(n) $3,300, 30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable. Apr. 16 Privet dishonored her note. May 31 Midnight Co. dishonored its note. Aug. 7 Accepted a(n) $7,900, 90-day, 10% note in granting a time extension on the past-due account receivable of Mulan Co. Sep. 3 Accepted a(n) $3,210, 60-day, 11% note in granting Noah Carson a time extension on his past-due account…
Following are transactions of The Barnett Company: 2023 Dec. 16 Accepted a $22,900, 60-day, 5% note dated this day in granting Carmel Karuthers a time extension on her past-due account. Made an adjusting entry to record the accrued interest on the Karuthers note. Closed the Interest income account. Dec. 31 Dec. 31 2024 Feb. 14 Mar. 2 Mar. 17 May 31 Received Karuthers' payment for the principal and interest on the note dated December 16. Accepted an $8,800, 4%, 90-day note dated this day in granting a time extension on the past-due account of ATW Company. Accepted a $4,000, 30-day, 4.5% note dated this day in granting Leroy Johnson a time extension on past-due account. Received ATW's payment for the principal and interest on the note dated March 2. Prepare journal entries to record The Barnett Company's transactions. (Assume 365 days in a year. Round your answers to 2 decimal places.) View transaction list
On October 1, 2023 PT. Leci borrowed $500,000 from Pineapple Bank by signing a 10-month, 6% note. If on December 31 PT. Leci makes adjusting entries, then on August 1, 2024 what is the amount of interest expense recorded by PT. Lychee when paying off the notes? a. 17.500 b. 21 000 c. 9.000 d. 30.000 e. 7.500
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.
Annette Corp. issued a $330,000, three-year, zero-interest-bearing note payable to Agnes Corp. for equipment on April 30, Year 5. Annette would normally pay interest at 6%. Annette has a December 31 year-end and will repay the note with three equal yearly payments of $110,000. Annette Corporation follows IFRS. Instructions Prepare the following journal entries for Annette Corporation: (show all your work) 1. Record the note 2. December 31, Year 5 interest accrual 3. April 30, Year 6 payment 4. December 31, Year 6 interest accrual 5. April 30, Year 7 payment
Rain T-Shirts issued a $440,600 note on January 1, 2018 to a customer, Larry Potts, in exchange for merchandise. The merchandise had a cost to Rain T-Shirts of $220,300. The terms of the note are 24-month maturity date on December 31, 2019 at a 4.5% annual interest rate. Larry Potts does not pay on his account and dishonors the note. Record journal entries for Rain T-Shirts for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
on Nov 1 alan co. signed a 120 - day, 9% note payable with a face value of 18,000. alan made the appropriate year-end accrual. what is the journal entry as of March 1 to record the payment of the note assuming no reversing entry was made
Tony Acrobats lent $44,639 to Donaldson, Inc., accepting Donaldson's 2-year, $55,000, zero-interest-bearing note. The implied interest rate is 11%. Prepare Tony's journal entries for the initial transaction, recognition of interest each year, and the collection of $55,000 at maturity. (Round answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation (To record the initial transations) (To record the recognition of interest in year one) Debit I Credit
December 13 Accepted a $22, 000, 45-day, 4% note in granting Miranda Lee a time extension on her past-due account receivable. December 31 Prepared an adjusting entry to record the accrued interest on the Lee note. January 27 Received Lee's payment for principal and interest on the note dated December 13. March 3 Accepted a $16, 000, 6%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company. March 17 Accepted a $18,000, 30-day, 6% note in granting H. Cheng a time extension on his past-due account receivable. April 16 H. Cheng dishonored his note. May 1 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts. June 1 Received the Tomas payment for principal and interest on the note dated March 3. Complete the table to calculate the interest amounts and use those calculated values to prepare your journal entries. (Do not round Intermediate calculations. Use 360 days a year.) Complete this question by entering your answers in the…