At January 1, 2024, Brant Cargo acquired equipment by issuing a six-year, $100,000 (payable at maturity), 6% note. The market rate of interest for notes of similar risk is 10%. Required: 1. to 3. Prepare the necessary journal entries for Brant Cargo. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) No 1 2 3 Date January 01, 2024 Equipment December 31, 202 Interest expense X Answer is not complete. Discount on notes payable Notes payable General Journal December 31, 202 Interest expense Discount on notes payable Cash Discount on notes payable Cash ✓ ✓ ✓ Debit 62,092 X 37,908 x Credit 100,000

At January 1, 2024, Brant Cargo acquired equipment by issuing a six-year, $100,000 (payable at maturity), 6% note. The market rate of interest for notes of similar risk is 10%. Required: 1. to 3. Prepare the necessary journal entries for Brant Cargo. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) No 1 2 3 Date January 01, 2024 Equipment December 31, 202 Interest expense X Answer is not complete. Discount on notes payable Notes payable General Journal December 31, 202 Interest expense Discount on notes payable Cash Discount on notes payable Cash ✓ ✓ ✓ Debit 62,092 X 37,908 x Credit 100,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 98PSB

See similar textbooks

Similar questions

Please answer do not image format
N3.
Brief Exercise 7-18 (Algo) Long-term Notes Receivable [LO7-7] On April 19, 2021, Millipede Machinery sold a tractor to Thomas Hartwood, accepting a note promising payment of $110,000 in eight years. The applicable effective interest rate is 5%. (EV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What amount of sales revenue would Millipede recognize on April 19, 2021, for the Hartwood transaction? (Round your final answer to nearest whole dollar.) Sales revenue
Answer in text fomr
Zuhoor Muscat Company borrowed RO 240,000 from the bank signing a 8%, 6-month note on October 1, 2020. The recorded amount of accrued interest expense on December 31, 2020 will be: a. None of the options are correct. Ob. RO 40,000. O c. RO 240,000. Od. RO 4,800. O e. RO 9,600. NEXT PAGE 4440 025 Type here to search B. red by ws 10 S acer
A3
Please assist
4. Discount Note On December 31, 2020, your firm provided the services to the high-end clientele and accepted in exchange a promissory note with a face value of $600,000, a due date of December 31, 2023, and a stated rate of 5%, with interest receivable at the end of each year. The note is considered to have a market rate of 10%. Required a. Prepare a schedule of note discount amortization for this note using the effective interest method b. Prepare the journal entries for the dates indicated in the schedule in part a above. c. Prepare a schedule of note discount amortization for this note using the straight-line method d. Prepare the journal entries for the dates indicated in the schedule in part c above. 5. Premium Note Your firm invested in notes issued by Grove Corporation with $2,000 par value and stated rate of 10% on Jan 1, 2018, due on Dec 31, 2020. The interest will be paid once a year on December 31. The similar notes have effective annual interest rate (market interest…
ssuance and Interest Amortization for Zero Coupon Note (Straight Line) Kerwin Company borrowed $10,000 on a 2-year, zero coupon note. The note was issued on January 1, 2024. The face amount of the note, $12,544, is to be paid at maturity on December 31, 2025. Required: 1. Assuming straight line amortization, calculate the interest expense for 2024 and 2025.$fill in the blank 316d63fd3fc8024_1 2. Prepare the entries to recognize the borrowing, the first year's interest expense, and the second year's interest expense plus redemption of the note at maturity. If an amount box does not require an entry, leave it blank. 2024 Jan. 1 - Select - - Select - - Select - - Select - - Select - - Select - Record issuance of note at discount 2024 Dec. 31 - Select - - Select - - Select - - Select - Record interest expense 2025 Dec. 31 - Select - - Select - - Select - - Select - - Select - - Select -…
Sh20
Please do not give solution in image format
On January 1, 2024, Wildhorse Company issued for cash a $570000, 5-year note bearing annual interest at 10% to Wilson, Inc. The market rate of interest for a note of similar risk is 12%. What interest expense would be recorded on December 31, 2024? a) $52891b) $0c) $63469d) $57000