Byrde Industries had the following transactions occur:Nov. 1: Accepted a $81,000, 75 day, 5% note from Ruth Langmore in granting a timeextension on her past-due account receivable.Dec. 31: Adjusted the year-end accounts for the accrued interest earned on the note.Next year: Ruth Langmore honored the note on its due date.Use this information to answer the following questions. Assume 360 days in a calendar year.Round all answers to the nearest dollar.1. Provide the journal entry Byrde records on November 1. If no entry is required type NoEntry.2. Provide the journal entry Byrde records on December 31. If no entry is required type NoEntry.3. Provide the date and the journal entry Byrde records on the date the note is honored. Ifno entry is required type No Entry.

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Answered: Byrde Industries had the following…

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 January 1, MM Company borrows $360,000 cash from a bank and in return signs an 8% installment note for five annual payments of $90, 164 each. Analyze transactions involving issuance of the note and its first annual payment, by showing their effects on the accounting equation-specifically, identify the accounts and amounts (including + or -) for each transaction.
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!!
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Martinez Co. borrowed $60,000 on March 1 of the current year by signing a 60-day, 8%, interest-bearing note. Assuming a 360-day year, when the note is paid on April 30, the entry to journalize the payment should include a a. debit to Interest Payable for $800 Ob. debit to Interest Expense for $800 Oc. credit to Cash for $60,000 C. Od. credit to Cash for $64,800 B
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