Bank draft from customer 10,000 Bond sinking fund - cash (bond is repayable on January 31, 2017) 10,000 Bond sinking fund - cash (bond is repayable on June 30, 2018) 10,000 Cash in bank(with legally restricted compensating balance of 10,000) Cash in savings account 20,000 10,000 Cash set aside for plant expansion (to be disbursed on March 23, 2017) Cashier's check Checking account at BPI Checking account at Metrobank Employees' postdated check Foreign bank account – restricted 10,000 10,000 10,000 (10,000) 10,000 10,000 Money order from customer 10,000

Bank draft from customer 10,000 Bond sinking fund - cash (bond is repayable on January 31, 2017) 10,000 Bond sinking fund - cash (bond is repayable on June 30, 2018) 10,000 Cash in bank(with legally restricted compensating balance of 10,000) Cash in savings account 20,000 10,000 Cash set aside for plant expansion (to be disbursed on March 23, 2017) Cashier's check Checking account at BPI Checking account at Metrobank Employees' postdated check Foreign bank account – restricted 10,000 10,000 10,000 (10,000) 10,000 10,000 Money order from customer 10,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.
Required:2. to 4. Prepare the journal entry Gold Examiner would record on March 1, March 30 and April 1.
Recording Note Transactions The following information is extracted from Tara Corporation’s accounting records: May 1 Received a $6,000, 12%, 90-day note from V. Leigh, a customer. May 6 Received a $9,000, 10%, 120-day note from C. Gable, a customer. May 11 Sold the Leigh and Gable notes with recourse at the bank at 13%. In addition, borrowed $10,000 from the bank for 90 days at 12%. The bank remits the face value less the interest. The estimated recourse liability for Leigh and Gable is $84 and $110, respectively. July 31 The July bank statement indicated that the Leigh note had been paid. Aug. 10 Repaid the $10,000 borrowed on May 11. Sept. 4 Received notice that Gable had defaulted on the May 6 note. The bank charged a fee of $10. Paid the amount due on the Gable note to the bank. Informed Gable to pay Tara the entire amount due plus 11% interest on the total of the face amount of the note, the accrued interest, and the fee from the maturity date until Gable remits the amount owed.…
On November 1, Year 1 Shelter Company loaned $4,000 cash to Cove Company. The one-year note carried a 5% rate of interest. Which of the following shows how the loan will affect Shelter's financial statements on November 1, Year 1? A. B. C. D. Assets Cash -4,000 -4,000 -4,000 -4,000 Multiple Choice O Net + Receivable = 4,000 4,000 ΝΑ ΝΑ Option A Option C Option D Balance Sheet = Liabilities+ Stockholders' Equity Accounts Common Retained Stock + Earnings Payable + ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ Option B 4,000 -4,000 Revenue ΝΑ ΝΑ ΝΑ ΝΑ Income Statement Expense Net Income ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ Statement of Cash Flows -4,000 IA -4,000 OA 4,000 IA -4,000 OA