Cheyenne Corporation issued a 4-year, $31,000, 4% note to Greenbush Company on January 1, 2020, and received a computer that normally sells for $24,268. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 11%. Prepare Cheyenne's journal entries for (a) the January 1 issuance and (b) the December 31 interest.

Cheyenne Corporation issued a 4-year, $31,000, 4% note to Greenbush Company on January 1, 2020, and received a computer that normally sells for $24,268. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 11%. Prepare Cheyenne's journal entries for (a) the January 1 issuance and (b) the December 31 interest.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 24Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms...

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Cheyenne Corporation issued a 4-year, $31,000, 4% note to Greenbush Company on January 1, 2020, and received a computer that normally sells for $24,268. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 11%.Prepare Cheyenne’s journal entries for (a) the January 1 issuance and (b) the December 31 interest.
McCormick Corporation issued a 4-year, $40,000, 5% note to Greenbush Company on January 1, 2020, and received a computer that normally sells for $31,495. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 12%. Prepare McCormick's journal entries for (a) the January 1 issuance and (b) the December 31 interest.
Cullumber Corporation issued a 4-year, $38,000, 4% note to Greenbush Company on January 1, 2020, and received a computer that normally sells for $30,773. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 10%. Prepare Cullumber’s journal entries for (a) the January 1 issuance and (b) the December 31 interest. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No.DateAccount Titles and ExplanationDebitCredit(a) (b)
Cullumber Corporation issued a 4-year, $38,000, 4% note to Greenbush Company on January 1, 2025, and received a computer that normally sells for $30,773. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 10%. Prepare Cullumber's journal entries for (a) the January 1 issuance and (b) the December 31 interest. (Round answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date n. 1, 2025 31, 2025 Account Titles and Explanation Discount on Notes Payable Notes Payable Interest Expense Discount on Notes Payable Cash Debit 30773 7227 Credit LIIALI 38000
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Sheffield Corporation issued a 3-year, $66,000, 6% note to Oriole Company on January 1, 2017, and received an excavator that normally sells for $57,936. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 11%. Prepare Sheffield's journal entries for (a) the January 1 issuance and (b) the December 31 interest. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (a) (b)
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Bull City Industries is considering issuing a $100,000, 7% note to a creditor on account.a. If the note is issued with a 45-day term, journalize the entries to record:1. the issuance of the note.2. the payment of the note at maturity.b. If the note is issued with a 90-day term, journalize the entries to record:1. the issuance of the note.2. the payment of the note at maturity.
On January 1, 2022, Slack Company finished legal services and accepted in exchange a 5% $400,000 promissory note with a due date of December 31, 2024. Interest is receivable on January 1 of each year. Notes with similar risk have a market rate of interest of 10%. (c) Prepare a Schedule of Note Discount/Premium Amortization for Slack Company under the effective interest method. (d) Prepare the journal entries on the following dates: Jan 1, 2022 and Dec 31 2022
Use the following information for item 40 and 41. On January 1, 2020, Golden Rams Company borrowed $100,000 from Albany State Bank and signed a five-year, 10% installment note. The note requires annual payments of $26,378, beginning on December 31, 2020. This payment consists of principal of $16,378 and interest of $10,000. The journal entry on December 31 would consist of a debit to Notes Payable for $10,000, debit to Interest Expense for $16,378, and a credit to Cash for $26,378. True False