**d. December 31, Year 3—Interest payment.**This section refers to the accounting entry required to record an interest payment. The table below outlines the necessary fields, though it appears the specific account names and amounts are not filled out.| Date | Account Name | Debit | Credit ||------------------|--------------|-------|--------|| Dec. 31, Year 3 | | 0 | 0 || | | 0 | 0 || | | 0 | 0 |*Note: The purpose of this entry is to record interest payment.***e. December 31, Year 3—Note payment at maturity.**This section refers to the accounting entry required to record the payment of a note at its maturity. Similar to the above, the fields for account names and amounts need to be completed.| Date | Account Name | Debit | Credit ||------------------|--------------|-------|--------|| Dec. 31, Year 3 | | 0 | 0 || | | 0 | 0 |*Note: This entry is for recording the note payment at maturity.* On January 1 of Year 1, Jet Air Inc. contracted with Systems Plus Inc. to manufacture equipment. Jet Air Inc. issued an $82,500 note to Systems Plus Inc. in exchange for the equipment. The note requires 5% interest payments annually over 3 years on December 31 of each year. Although the fair value of the equipment is not reasonably determinable, it was determined that 10% was a reasonable rate of interest for such a transaction.Provide journal entries to be made by Jet Air Inc. at each of the following dates.**Note**: Round your answers to the nearest whole dollar.### a. January 1, Year 1—Note issuance.#### Table for Note Issuance| Date | Account Name | Debit | Credit ||------------|---------------------|-------|--------|| Jan. 1, Year 1 | | | || | | | || | | | |To record note issuance.### b. December 31, Year 1—Interest payment.#### Table for Interest Payment| Date | Account Name | Debit | Credit ||-------------|---------------------|-------|--------|| Dec. 31, Year 1 | | | || | | | || | | | |To record interest payment.### c. December 31, Year 2—Interest payment.#### Table for Interest Payment| Date | Account Name | Debit | Credit ||-------------|---------------------|-------|--------|| Dec. 31, Year 2 | | | || | | | || | | | |To record interest payment.(Note: Specific account names and amounts to be filled based on the actual accounting practices or given calculations.)

To raise funds, notes can be issued. The notes are issued at a discount, which means that the cash…

Answered: d. December 31, Year 3-Interest…

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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A B E 2 Determine the maturity date and compute interest for each note. 3 Days to be used per year 360 days 4 Note Contract Date Principal Interest Rate Period of Note (Term) 6. 1 1-Mar $10,000 6% 60 days 7 2 15-May 15,000 8% 90 days 8 3 20-Oct 8,000 4% 45 days 9. 10 Required: 11 12 (Use cells A5 to F8 from the given information to complete this question.) 13 14 Note Contract Date Maturity Date Interest Expense 15 16 17 3 18
Calculate the due date, interest due, and maturity value of the following notes: Date of Note Face Amount Interest Rate Term of Note Due Date Interest Due Maturity Value a. 24-Apr $70,000 3% 60 days b. 13-Jul 30,000 5% 120 days c. 9-Aug 40,000 4% 45 days d. 12-Sep 60,000 8% 90 days e. 5-Nov 50,000 6% 30 days
26
Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $26,500,000 of five-year, 12% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 13%, resulting in Chin receiving cash of $25,547,585. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. 1. 2. 3. 300 000 000 000 000 b. Determine the amount of the bond interest expense for the first year.
K An invoice is dated June 18 with terms 3/10-50 ex. Find the final discount date and the net payment date. The net payment date is 20 days after the final discount date. The final discount date is The net payment date is June July ▼ ▼ CHE
Please help me
! Required information [The following information applies to the questions displayed below.] Claire Corporation is planning to issue bonds with a face value of $160,000 and a coupon rate of 8 percent. The bonds mature in two years and pay interest quarterly every March 31, June 30, September 30, and December 31. All of the bonds were sold on January 1 of this year. Claire uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 12 percent.(FV of $1. PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Show Transcribed Text < Journal entry worksheet Note: Enter debits before credits. Record the issuance of the bonds on January 1. Date January 01 Record entry J General Journal Clear entry c Debit Credit View general journal
Determine Due Date and Interest on Notes Determine the due date and the amount of interest due at maturity on the following notes. When calculating interest amounts, assume there are 360 days in a year. Round intermediate calculations to 4 decimal places, and round your final answers to the nearest whole dollar. Date of Note Face Amount Interest Rate Term of Note a. January 15 $73,400 11 % 30 days b. April 1 17,375 13 90 days c. June 22 31,500 12 45 days d. August 30 23,265 10 120 days e. October 16 12,530 12 50 days Due Date Interest Due at Maturity a. $fill in the blank 2 b. $fill in the blank 4 c. $fill in the blank 6 d. $fill in the blank 8 e. $fill in the blank 10
Determine Due Date and Interest on Notes Determine the due date and the amount of interest due at maturity on the following notes. When calculating interest amounts, assume there are 360 days in a year. Round intermediate calculations to 4 decimal places, and round your final answers to the nearest whole dollar. Date of Note a. January 15 April 1 b. C. d. e. a. b. C. d. e. June 22 August 30 October 16 Due Date Feb. 14 Jun. 38 Aug. 6 Dec. 28 Dec. 5 Face Amount $44,175 $ 12,350 19,800 20,535 10,935 Interest Due at Maturity Interest Rate 9% 9 13 13 8 Term of Note 30 days 90 days 45 days 120 days 50 days

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d. December 31, Year 3-Interest payment. Date Dec. 31, Year 3 Account Name Date Dec. 31, Year 3 To record interest payment. e. December 31, Year 3-Note payment at maturity. Account Name To record interest payment. Debit Debit O 0 0 0 0 Credit Credit 0 0 0 0 0