EB7 and PA5 payment into a short-term note, with an annuaShow the entries for the initial purchase, the partial payment, and the conversion.EB7. LO 12.2McMasters Inc, specializes in BBQ accessories. In order for the company topand its business, they take out a long-term loan in the amount of $800,000. Assume that anyins are created on January 1. The terms of the loan include a periodic payment plan, whereterest payments are accumulated each vear but are only computed against the outstandingPricipal balance during that current period. The annual interest rate is 9%. Each year onDecember 31, the company pays down the principal balance by $50,000. This payment ishtdered part of the outstanding principal balance when computing the interest accumulationthat also occurs on December 31 of that year.petermine the outstanding principal balance on December 31 of the first year that is computedfor interest.Compute the interest accrued on December 31 of the first year.Make a journal entry to record interest accumulated during the first year, but not paid as ofDecember 31 of that first year.PA5. LO 13.3Volunteer Inc, issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $540,000. Interest is payable annually. The premium isamortized using the straight-line method. Prepare journal entries for the following transactions.July 1, 2018: entry to record issuing the bondsJune 30, 2019: entry to record payment of interest to bondholdersJune 30, 2019: entry to record amortization of premiumJune 30, 2020: entry to record payment of interest to bondholdersJune 30, 2020: entry to record amortization of premiumPB5. LO 13.3Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-yearterm on July 1, 2018 and received $480,000. Interest is payable annually. The discount isamortized using the straight-line method. Prepare journal entries for the following transactions.July 1, 2018: entry to record issuing the bondsJune 30, 2019: entry to record payment of interest to bondholdersJune 30, 2019: entry to record amortization of discount

Journal entries shows the recording of transaction during an accounting year and every transaction have dual effect that is., debit and credit.EB7 Outstanding principal balance on Dec 31 = $800,000Interest accrued = 800,000 x 9% = 72,000 Date Account titles & explanation Debit Credit Dec 31 Interest expense 72,000 Interest payable 72,000 (To record interest accrued) Note: As per the guidelines, first question is answered. For other question, please ask separately.

Business

Accounting

BB7. LO 12.2McMasters Inc, specializes in BBQ accessories. In order for pand its business, they take out a long-term loạn in the amount of $800,000. Assume that any ins are created on January 1. The terms of the loan include a periodic payment plan, where terest payments are accumulated each vear but are only computed against the outstanding interest Kicipal balance during that current period. The annual interest rate is 9%. Each year on December 31, the company pays down the principal balance by $50,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. etermine the outstanding principal balance on December 31 of the first year that is computed for interest. Compute the interest accrued on December 31 of the first year.

BB7. LO 12.2McMasters Inc, specializes in BBQ accessories. In order for pand its business, they take out a long-term loạn in the amount of $800,000. Assume that any ins are created on January 1. The terms of the loan include a periodic payment plan, where terest payments are accumulated each vear but are only computed against the outstanding interest Kicipal balance during that current period. The annual interest rate is 9%. Each year on December 31, the company pays down the principal balance by $50,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. etermine the outstanding principal balance on December 31 of the first year that is computed for interest. Compute the interest accrued on December 31 of the first year.

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

Please help me with this question
What number is cell D4 referring to on the first part of the question?
ind a salutien co the Inear equation 14x-y=-14
please do 7.4 -7.5 thank you .
A7 please help[.....
Data: So 101; X= 114; 1+r= 1.12. The two possibilities for sr are 143 and 85.
10078+0987=
Calculate: D where D=5.96, and r=0.029
Fans Company has two service departments-product design and engineering support, and two production departments - assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: Design SERVICE DEPARTMENT Product Design 0% Engineering Support 20% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design Engineering Support Assembly Finishing Multiple Choice $1,863,265 SERVICES PROVIDED TO Support 10% 0% $623,878 $1,036,122 Assembly 30% 45% $100,000 $ 200,000 $540,000 $ 820,000 The total cost accumulated in the assembly department using the reciprocal method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar) Finishing 60% 35% D
102. Four capacitors C1-1uF, C2=2uF, C3=3uF and C4-4uF are connected as given in figure. The potential of junction O is A. 16.5 V B. 18 V C. 15.5 V D. 18.5 V 10 V 5V C₁ # H C3+ CA 20 V 30 V
1. A-n-n-a- -M-a-r-i-e- -R-o-m--a-n- -r-e-c-e-n-t-l-y- -g-r-a-d-u-a-t-e-d- -f-r-o-m- -c-o-l-l-e-g-e- -a-n-d- -i-s- -e-v-a-l-u-a-t-i-n-g-- t-w-o- -c-r-e-d-i-t- -c-a-r-d-s-.- -C-a-r-d- -A- -h-a-s- -a-n-n-u-a-l- -f-e-e- -o-f P7,500 a-n-d- -a-n- -i-n-t-e-r-e-s-t- -r-a-t-e- -o-f 9%. C-a-r-d- -B- -h-a-s- -n-o- -a-n-n-u-a-l- -f-e-e- -a-n-d- -a-n- -i-n-t-e-r-e-s-t- -r-a-t-e- -o-f 16%. A-s-s-u-m-i-n-g- -t-h-a-t- -A-n-n-a- -M-a-r-i-e- -i-n-t-e-n-d-s- -t-o- -c-a-r-r-y- -n-o- -b-a-l-a-n-c-e- -a-n-d- -p-a-y- -o-f-f- -h-e-r- -c-h-a-r-g-e-s- -i-n- -f-u-l-l- -e-a-c-h- -m-o-n-t-h-,- -w-h-i-c-h- -c-a-r-d- -r-e-p-r-e-s-e-n-t-s- -t-h-e -b-e-t-t-e-r- -d-e-a-l-?- -I-f- -A-n-n-a- -M-a-r-i-e- e-x-p-e-c-t-e-d- -t-o- -c-a-r-r-y- -a- -s-i-g-n-i-f-i-c-a-n-t- -b-a-l-a-n-c-e- -f-r-o-m- -o-n-e- -m-o-n-t-h- -t-o- -t-h-e- -n-e-xt-,- -w-h-i-c-h- -c-ar-d- -w-o-u-l-d- -b-e- -b-e-t-t-e-r-?- -E-x-p-l-a-i-n- 2. -W-h-a-t- -i-s- -y-o-u-r- -o-p-i-n-i-o-n- -a-b-o-u-t- -u-s-i-n-g- -c-o-n-s-u-m-e-r-s- -l-o-a-n-s- -a-n-d-…
Q7