Beta made a 4%, $20,000, 2-year loan to Alpha on July 1. Theinterest will be received when the loan is repaid. What adjustingjournal entry should be recorded on December 31 (end of year)?Group of answer choices Debit Interest Receivable 600 and creditInterest Revenue 600 Debit Interest Receivable 400 and creditInterest Revenue 400 The correct answer is not listed. Debit InterestReceivable 800 and credit Interest Revenue 800 Debit InterestReceivable 1, 600 and credit Interest Revenue 1, 600

Adjusting entries are journal entries that are passed at the end of the accounting period to adjust…

Answered: Beta made a 4%, $20,000, 2-year loan to…

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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The opening balance of a savings account for November is $2,004.On November 9. S621 was withdrawn from the account. On November 22, 449 was withdrawn from account. t the acoount pays simple interest at 195% based en the daily cosing balance how much interest is deposited on December 17 For marks your answer should be rounded to he nearest cent Interest = S 0.00
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Question 6. Attached is a similar question answered. Please complete for January through December :)
The opening balance of a savings account for June is $2,966. On June 9, $140 was withdrawn from the account. If the account pays simple interest at 1.15% based on the daily closing balance, how much interest is deposited on July 1? For full marks your answer should be rounded to the nearest cent. Interest = $0.00
Royal Bank agrees to lend Backyard Corporation $200,000 on January 1. Backyard signs a $200,000, 4%, 9-month note. Interest is due at maturity on September 30. Backyard's year end is March 31 when they post adjusting entries. What journal entry will Backyard make when paying off the note and interest at maturity? Debit notes payable $200,000, interest expense $4,000 and interest payable $2,000; Credit cash $206,000 Debit notes payable $206,000; Credit cash $206,000 Debit notes payable $200,000 and interest expense $6,000; Credit cash $206,000 Debit notes payable $200,000, interest expense $2,000 and interest payable $4,000; Credit cash $206,000
Journalize the following entries on the books of the borrower and creditor. Label accordingly. (Assume a 360-day year is used for interest calculations.) June 1 James Co. purchased merchandise on account from O’Leary Co., $90,000, terms n/30. The cost of merchandise sold was $54,000. 30 James Co. issued a 60-day, 5% note for $90,000 on account. Aug. 29 James Co. paid the amount due.
ABC lends Evergreen Inc. $40,000 on June 1, accepting a four-month, 6% interest note. ABC prepares financial statement on June 30. Which of the following represents correct adjusting entry pertaining this promissory note? O Debit Note Receivable $40,000 O Credit Interest Revenue $600 debit Interest Receivable $200 O Debit Cash $600

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