please solve this question Comet Corporation's liability account balances at June 30, 2013 included a 10percent note payable. The note is dated October 1, 2011, and carried an originalprincipal amount of $600,000. The note is payable in three equal annualpayments of $200,000 plus interest. The first interest and principal paymentwas made on October 1, 2012. In Comet's June 30, 2013 balance sheet, whatamount should be reported as Interest Payable for this note?a) $10,000b) $15,000c) $30,000d) $45,000

We determine the amount that should be reported as Interest Payable for Comet Corporation's note on…

Answered: Comet Corporation's liability account…

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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ABC Corporation’s liability account balances at June 30, 2018, included a 10% notes payable in the amount of 3,600,000. The note is dated October 1, 2018, and is payable in three equal annual payments of 1,200,000 plus interest. The first interest and principal payment was made on october 1, 2018. In its June 30, 2019, financial statemnet, what amount should be recorded as accrued interest for this note?
Included in Panera Corporation’s liability account balances at December 31, 2004 was a Note payable for 2,800,000. The principal amount of the note payable is P2,800,000 and bears interest at 15%. The note is dated April 1, 2004 and is payable in four equal installments of P700,000 beginning April 1, 2005. The first principal and interest payment was made on April 1, 2005. Determine the non-current portion of the note payable as of December 31, 2005
Included in Sauder Corp.'s liability account balances at December 31, 2009 were the following: 1. 7% note payable issued October 1, 2009, maturing September 30, 2010 in the amount of $250,000 2.8% note payable issued April 1, 2009, payable in six equal annual installments of $150,000 beginning April 1, 2010 in the amount of $600,000 Sauder's December 31, 2009 financial statements were issued on March 31, 2010. On January 15, 2010, the entire $600,000 balance of the 8% note was refinanced by issuance of a long-term obligation payable in a lump sum. In addition, on March 10, 2010, Sauder consummated a noncancelable agreement with the lender to refinance the 7%, $250,000 note on a long term basis, on readily determinable terms that have not yet been implemented On the December 31, 2009 balance sheet, the amount of the notes payable that Sauder should classify as short-term obligations is: $0 O $50,000 $125.000 $175.000
On October 1, 2021, Smash Company discounted its own note of $500,000 at 10% for 1 year. In its statement of financial position on December 31, 2021, what is the carrying amount of notes payable to be presented as current liability by Smash Company?
Mana Company had P5,000,000 note payable due on March 1, 2020. The entity borrowed P3,500,000 on February 1, 2020 which had a five-year term and used the proceeds to pay down the note and used other cash to pay the balance. The December 31, 2019 financial statements were issued on March 31, 2020. What amount of the note payable should be classified as noncurrent on December 31, 2019?
Included in Allen Corp.'s balance sheet at June 30, 2015 is a 10%, $3,000,000 note payable. The note is dated October 1, 2013 and is payable in three equal annual payments of $1,500,000 plus interest. The first interest and principal payment was made on October 1, 2014. In Allen's June 30, 2015 balance sheet, what amount should be reported as accrued interest payable for this note? A. $75,000. B. $112,500. C. $337,500. D. $225,000.
On January 1, 2020, Sunland Company, a calendar-year company, issued $897000 of notes payable, of which $224250 is due on January 1 for each of the next four years. Ignoring interest, the proper balance sheet presentation on December 31, 2020, is O Current Liabilities, $448500; Long-term Debt, $448500. O Long-term Debt, $897000. O Current Liabilities, $224250; Long-term Debt, S672750. O Current Liabilities, $897000.
At December 31, 20X1, Evans Corp. has a note payable balance of $100,000. This note was originally issued on December 31, 20X1, and will be paid back in installments over a five-year period. $15,500 of the outstanding amount of $100,000 on December 31, 20X1, will be paid back in 20X2. Question: How should this note be classified in the liability section of Evans's balance sheet at December 31, 20X1? Select one: a. The full $100,000 should be classified in the long-term liability section. b. $15,500 should be classified in the current liability section, and $84,500 should be classified in the long-term liability section. c. $84,500 should be classified in the current liability section, and $15,500 should be classified in the long-term liability section. d. The full $100,000 should be classified in the current liability section.
8) Camrey Company issued a five-year, interest-bearing note payable for $50,000 on January 1, 2013. Each January Camrey is required to pay $10,000 principal on the note. What is the amount that will be reported on the long-term portion of long-term notes payable on the December 31, 2014 balance sheet? A) $10,000 B) $40,000 C) $30,000 D) $20,000
On December 31, 2011 , Bunny Co. received a 10% note with face amount of P1,500,000. Both principal and compounded interests are due on December 31, 2014. How much interest receivable is reported on the December 31, 2012 statement of financial position?
Samson Corporation issued a 4-year, $75,000, zero-interest-bearing note to Brown Company on January 1, 2017, and received cash of $47,664. The implicit interest rate is 12%. Prepare Samson’s journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest.
The Company issued a short-term debt of $65,000 on July 1, 2021 for a period of 5 months with a note payable of 14% interest. The company uses the accounting period on a quarterly basis. Required: Prepare the journal entries needed to record the issuance of the debt, recognize interest expense, and pay off the debt as it matures. Note: Include the current method of processing and the excel formula

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