A-5 Example 14.5: JN Min Corporation, a calendar-year company, borrowed $1,000,000 on August 15, 2015. The note specifies an 8% interest rate and is due in three years. Interest is paidquarterly. The fiscal year ends on December 31. The current market rate is 12%. Interest is compounded quarterly. JN Min prepares quarterly financial statements. Prepare theamortization table for the note and the journal entries for 2015.GivenSolve for PVN12I/Y3.00%PV900,460PMTFV-20,000 - 1,000,000Excel Formula=PV(0.03,12,-20000,- 1000000)

Based on the provided information, to calculate the present value (PV) of the loan, we utilize the…

Answered: Example 14.5: JN Min Corporation, a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

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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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Example 14.5: JN Min Corporation, a calendar-year company, borrowed $1,000,000 on August 15, 2015. The note specifies an 8% interest rate and is due in three years. Interest is paid quarterly. The fiscal year ends on December 31. The current market rate is 12%. Interest is compounded quarterly. JN Min prepares quarterly financial statements. Prepare the amortization table for the note and the journal entries for 2015. Given Solve for PV N 12 I/Y 3.00% PV 900,460 PMT -20,000 FV - 1,000,000 Excel Formula =PV(0.03,12,-20000,-1000000)
On September 1, 2015, Newtown borrowed $250,000 from First National Bank, and signed a 9% note payable due in one year. Interest on the note is due at maturity. Required: Please show calculations Part a. Prepare the journal entry to record the borrowing transaction. Part b. Prepare the required adjusting entry on December 31, 2015. Part c. Prepare the journal entry to record the payment of the interest on September 1, 2016. Part d. Prepare the journal entry to record the payment of the note on September 1, 2016.
Greener Pastures Corporation borrowed $1,000,000 on November 1, 2015. The note carried a9 percent interest rate with the principal and interest payable on June 1, 2016. Show the accountingequation effects and prepare the journal entries for ( a ) the note issued on November 1 and ( b ) theinterest accrual on December 31.
User During 2024, Teal Co. borrowed cash from Martinez Company by issuing notes payable as follows: 1. June 1, 2024, issued an eight-month, 6% note for $82,800. Interest and principal are payable at maturity. 2. October 1, 2024, issued a three-month, 6% note for $52,800. Interest is payable monthly on the first day of the month. Principal is payable at maturity. Teal has a November 30 fiscal year end and prepares adjusting entries on an annual basis.
Blanton Plastics, a household plastic product manufacturer, borrowed $14 million cash on October 1, 2018, toprovide working capital for year-end production. Blanton issued a four-month, 12% promissory note to L&TBank under a prearranged short-term line of credit. Interest on the note was payable at maturity. Each firm’sfiscal period is the calendar year.Required:1. Prepare the journal entries to record (a) the issuance of the note by Blanton Plastics and (b) L&T Bank’sreceivable on October 1, 2018.2. Prepare the journal entries by both firms to record all subsequent events related to the note through January31, 2019.3. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 12% isthe bank’s stated discount rate. (a) Prepare the journal entries to record the issuance of the noninterestbearing note by Blanton Plastics on October 1, 2018, the adjusting entry at December 31, and payment of thenote at maturity. (b) What would be the…
During 2024, Lane Co. borrowed cash from Greenberg Company by issuing notes payable as follows: 1. July 1, 2024, issued an eight-month, 4% note for $75,000. Interest and principal are payable at maturity. 2. November 1, 2024, issued a three-month, 5% note for $42,000. Interest is payable monthly on the first day of the month. Principal is payable at maturity. Lane has a December 31 fiscal year end and prepares adjusting entries on an annual basis. A) Prepare all necessary journal entries for Lane Co. to record the notes. B) Prepare the necessary interest payment transactions for Lane in 2024 and 2025. Prepare separate adjusting entries for each note. (Don't understand this part, please explain steps for the $ used and dates.) Date Account Titles and Explanation Debit Credit - - - - - - - - - - (To accrue interest on note issued July 1, 2024.) - - - - - (To accrue interest on note issued Nov. 1, 2024.) - - - - - - - -…
On October 1, 2009, a company received a one-year note receivable bearing an interest rate at market rate. The face amount of the note receivable and the entire amount of the interest are due on September 30, 2010. The interest receivable account at December 31, 2009 would consist of an amount representing a. Three months of accrued interest income B. Nine months of accrued interest income C. Twelve months of accrued interest income D. The excess at October 1, 2009 of the present value of the note receivable over its face value.
Blue Spruce Corp. lends Dobson industries $ 60000 on August 1, 2017, accepting a 9-month, 6% interest note. If Blue Spruce Corp. accrued interest at its December 31, 2017 year-end, what entry must it make to record the collection of the note and interest at its maturity date? Cash 62700 Notes Receivable 60000 Interest Revenue 2700 Notes Receivable 60000 Interest Receivable 1500 Interest Revenue 1200 Cash 62700 Cash 62700 Notes Receivable 60000 Interest Receivable 1500 Interest Revenue 1200 Cash 62700 Notes Receivable 62700
On September 1, 2012, Lowe Co. issued a note payable to National Bank in the amount of $900,000, bearing interest at 12%, and payable in three equal annual principal payments of $300,000. On this date, the bank's prime rate was 11%. The first payment for interest and principal was made on September 1, 2013. At December 31, 2013, Lowe should record accrued interest payable of Group of answer choices $36,000. $33,000. $24,000. $22,000.
Purdum Farms borrowed $10 million by signing a five-year note on December 31, 2015. Repayments of the principal are payable annually in installments of $2 million each. Purdum Farms makes the first payment on December 31, 2016 and then prepares its balance sheet. What amount will be reported as current and long-term liabilities, respectively, in connection with the note at December 31, 2016, after the first payment is made? Zero in current liabilities and $10 million in long-term liabilities. $2 million in current liabilities and $6 million in long-term liabilities. $2 million in current liabilities and $8 million in long-term liabilities. Zero in current liabilities and $8 million in long-term liabilities.
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THREE FLAGS Co. borrowed $100,000 from the Bull Run Bank on September 1, 2018. The note earns interest at a rate of 12% and matures in six months on February 28, 2019. THREE FLAGS is supposed to pay off BOTH principal and interests on February 28, 2019. Both THREE FLAGS Co. and Bull Run Bank prepares their financial statements on December 31. Please provide Journal entries for THREE FLAGS Co. on the following dates: 9/1/2018 12/31/2018 2/28/2019 Please provide Journal entries for Bull Run Bank on the following dates: 9/1/2018 12/31/2018 2/28/2019

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