For the following situation, record theadjusting journal entry required onDecember 31, 2016, for The PrestigeCorporation. No financial statements wereprepared during the year and no adjustingentries were recorded.On June 1, 2016, The Prestige Corporationborrowed $36,000 from the bank on a 9-month loan. The annual interest rate is 10%.

Step 1: Define Accrued ExpensesExpenses that accrue for a period should be recognized in the same…

Answered: For the following situation, record the…

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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The following are selected items from the accounting records of Atlanta Peach for the year ended December 31, 2011: I have attached information as a image. Other Information The note payable to Southern Bank is due in 60 days. Arrangements have been made to renew this note for an additional 24 months. The mortgage requires payments of $10,000 per month. An amortization table shows that its balance will be paid down to $733,000 by December 31, 2012. Accrued interest on the mortgage note payable is paid monthly. The next payment is due near the end of the first week in January 2012. Atlanta Peach has been sued for $2,000,000 in a product damage case. It is not possible at this time, however, to make a reasonable estimate of the possible loss, if any, that the company may have sustained. Requirements: Using the information provided, prepare the current and long-term liability sections of the company’s balance sheet dated December 31, 2011. (Within each classification, items may be…
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.
What is the interest expense for December 31 on these accounting question?
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.
On November 1, 2018, Quantum Technology, a geothermal energy supplier, borrowed $16 million cash to funda geological survey. The loan was made by Nevada BancCorp under a noncommitted short-term line of creditarrangement. Quantum issued a nine-month, 12% promissory note. Interest was payable at maturity. Quantum’sfiscal period is the calendar year.Required:1. Prepare the journal entry for the issuance of the note by Quantum Technology.2. Prepare the appropriate adjusting entry for the note by Quantum on December 31, 2018.3. Prepare the journal entry for the payment of the note at maturity
On June 30, 2018, the High Five Surfboard Company had outstanding accounts receivable of $600,000. On July1, 2018, the company borrowed $450,000 from the Equitable Finance Corporation and signed a promissory note.Interest at 10% is payable monthly. The company assigned specific receivables totaling $600,000 as collateral forthe loan. Equitable Finance charges a finance fee equal to 1.8% of the accounts receivable assigned.Required:Prepare the journal entry to record the borrowing on the books of High Five Surfboard.
(Assigned Accounts Receivable—Journal Entries) Salen Company finances some of its current operations by assigning accounts receivable to a finance company. On July 1, 2017, it assigned, under guarantee, specific accounts amounting to $150,000. The finance company advanced to Salen 80% of the accounts assigned (20% of the total to be withheld until the finance company has made its full recovery), less a finance charge of ½% of the total accounts assigned.On July 31, Salen Company received a statement that the finance company had collected $80,000 of these accounts and had made an additional charge of ½% of the total accounts outstanding as of July 31. This charge is to be deducted at the time of the first remittance due Salen Company from the finance company. (Hint: Make entries at this time.) On August 31, 2017, Salen Company received a second statement from the finance company, together with a check for the amount due. The statement indicated that the finance company had collected an…
Marshall Travel, disclosed the following rounded amounts (in millions) concerning the Allowance for Doubtful Accounts on its Form 10- K annual report. Year 2018 2017 2016 Allowance for Doubtful Accounts (dollars in millions) Increases for Bad Debt Expense Beginning Balance $ 42 36 38 Req 1A $ 30 31 20 Required: 1-a. Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2016 amounts from the above schedule. The balance at the beginning of each year in the Allowance for Doubtful Accounts is a credit balance. 1-b. Write the T-account in equation format to prove the above items account for the changes in the account. 2. Record summary journal entries for 2017 related to (a) estimating Bad Debt Expense and (b) writing off specific customer account balances. 3. Supply the missing information for 2018. 4. If Marshall Travel had written off an additional $31 of Accounts Receivable during 2018, by how much decreased? How much would Net Income have decreased? Complete…
Mission Corp. borrowed $25,000 cash on April 1, 2016, and signed a one-year 8%, interest-bearing note payable. The interest and principal are both due on March 31, 2017.What is the amount to be paid to the bank on March 31, 2017 for interest and principal (combined)?
On November 1, 2024, Dual Systems borrows $140,000 to expand operations. Dual Systems signs a six-month, 7% promissory note. Interest is payable at maturity. Dual System's year-end is December 31. Required: 1., 2. & 3. Record the following transactions for the note payable by Dual Systems. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest dollar amount.) View transaction list Journal entry worksheet < 1 2 3 Record the issuance of the note on November 1, 2024, Note: Enter debits before credits. Date November 01, 2024 General Journal Debit Credit Record entry Clear entry View general journal G 110 E
Can you answer this accounting question?
On January 1, 2024, Carla Vista Corp. borrows $12,600 by signing a 3-year, 6% note payable. The note is repayable in three annual fixed principal payments on December 31 of each year. (c) Prepare journal entries to record the note and the first instalment payment. (List all debit entries before credit entries. 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 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles Jan. 1, 2024 Dec. 31, 2024 Debit Credit

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