how is the 12/31 amount $3,350
Q: Waterway Company borrowed $36,000 on November 1, 2025, by signing a $36,000, 10%, 3-month note.…
A: Notes are instruments issued by the borrower. It acts as a negotiable instrument that carries a…
Q: 1. Costco Wholesale Corporation borrows $640,000 on September 1, 2021. Costco signs a nine- month,…
A: Formula: Interest amount = Notes payable amount x Time period x Interest rate.
Q: On July 1, 2022, Sheridan Company pays $18,500 to Wildhorse Co. for a 2-year insurance contract.…
A: Journal Entry: Date General Journal Debit Credit Jul. 1 Cash $18,500…
Q: The following unadjusted accounts are taken from the records of Brown Corp. at December 31, 2019:…
A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…
Q: On May 1, 2025, Sunland Company enters into a contract to transfer a product to Charlie Company on…
A: As per IFRS 15 "Revenue from contracts with customers" The cash received in advance will be…
Q: On June 8, Alton Co. issued an $77,100, 7%, 120-day note payable to Seller Co. Assume that the…
A: Interest: An interest is the cost of the funds loaned to the business by any lender.
Q: Kingbird Factory provides a 2-year warranty with one of its products which was first sold in 2025.…
A: Summary:-Journal entry is providedExplanation:
Q: Montague Auto Repair specializes in the repair of foreign car transmissions. To encourage business,…
A: Following is the answer to the given questions
Q: Clarity Co. has a year-end of December 31. The company estimates its annual warranty expense to be…
A: A warranty is a promise to the customer that the company would provide free service for the product…
Q: West County Bank agrees to lend Blossom Company $388000 on January 1. Blossom Company signs a…
A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year,…
Q: On January 2, 2020, Crane Company sells production equipment to Fargo Inc. for $46,000. Crane…
A: Journal: Recording of a business transactions in a chronological order.
Q: Required: 1. Assuming the duck hunting trip Bill has just completed is typical, what costs are…
A: The costs that are specifically connected to a particular choice or decision are referred to as…
Q: Record journal entries for the following transactions of Telesco Enterprises. Jan. 1, 2018 Issued a…
A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…
Q: On November 1, 2024, Survival Training Corporation borrows $51,000 cash from Community Savings and…
A: Journal entry refers to the initial record of a financial transaction. Journal entry is recorded in…
Q: On December 1, 2020, Shaw Company accepted from Bogner a $10,000, 3-month, 8% note in lieu of an…
A: Journal entries are used by the management to record the transactions in the books of accounts.…
Q: Sheridan Company lends Carla Vista Company $9400 on April 1, accepting a four-month, 6% interest…
A: Introduction: The amount of interest generated by a corporation over a given time period is referred…
Q: On November 19, Nicholson Company receives a $24,000, 60-day, 6% note from a customer as payment on…
A: Note receivable is recognized as a negotiable instrument. It represents the claim amount due on the…
Q: On January 2, 2020, Crane Company sells production equipment to Fargo Inc. for $46,000. Crane…
A: Note: Amount for warranty services is not given separatly in the question. So we are taking the…
Q: On November 1, 2024, Dual Systems borrows $140,000 to expand operations. Dual Systems signs a…
A: Step 1: The journal entries for issuance and payment of notes payable are passed as follows:-…
Q: Midshipmen Company borrows $19,000 from Falcon Company on July 1, 2024. Midshipmen repays the amount…
A: The journal entries are prepared to record the transactions on regular basis. The interest revenue…
Q: On October 31, 2020, DonutCo Company signed a $890,000, 5%, ten-month note payable with the amount…
A: Notes Payable - Notes is an instrument required to be issued by the borrower. This instrument is a…
Q: On July 1, 2022, Blossom Company pays $22,500 to Ivanhoe Company for a 1-year insurance contract.…
A: In this Numerical has covered the concept of Journal Entry, Adjusting Entry, and T-Accounts.
Q: Vaughn Company borrowed $31,200 on November 1, 2025, by signing a $31,200, 9%, 3-month note. Prepare…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Q: Prepare journal entry for Windsor, Inc. to record the receipt of the proceeds of the note. Prepare…
A: Solution:- Given, Windsor, Inc. borrows $67,200 from Wildhorse Co. Signing a 4%, one-year note…
Q: West County Bank agrees to lend Ivanhoe Company $292000 on January 1. Ivanhoe Company signs a…
A: On 30th march company is required to book interest expense on 200000 Interest Expense to be…
Q: Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of…
A: A note receivable is a promissory note form in which one person promises to pay the money to another…
Q: Monty Company borrowed $52,800 on November 1, 2025, by signing a $52,800, 9%, 3-month note. Prepare…
A: Notes payable is the obligation for an entity. It represents the amount of money to be paid by an…
Q: on december 1st Daw company accepts a $18,000, 45-day, 10% note from a customer. 1. prepare the…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Q: Paid 1/1/20 Coverage period 1/1/20—12/31/20 $3,500 Fire, storm, and other casualty insurance:…
A: Accounting refers to the process of documenting all the financial transactions of a company in its…
Q: Marin Family Importerssold goods to Tung Decorators for $ 31,800 on November 1, 2022, accepting…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: on January 1, 2021, dependable, Inc borrows $10,000 from a local bank by signing a 6% note July 1,…
A: The note refers to the amount that the company or individual owned from the bank or suppliers by…
Q: On November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $20,700. What…
A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.
Q: Delta took out a one year, 8% $100,000 loan on March 31, 2021. Interest is due upon maturity of the…
A: The adjustment entries are prepared to adjust the revenues and expenses of the current period.
Q: For Sandhill Co., post the entries passed on July 1 and December 31. (Post entries in the order of…
A: Solution:- First we needs to pass journal entries then post the entries to respective accounts based…
Q: Martinez Factory provides a 2-year warranty with one of its products which was first sold in 2025.…
A: Journal entries is an art of recording classifying and summarising the business transaction into…
Q: Windsor Company borrowed $49,200 on November 1, 2025, by signing a $49,200, 10%, 3-month note.…
A: The adjusting entries are journals made at year-end to correct the account balances. Adjustment…
Q: On September 1, 2022, Rowen Manufacturing issued a $90,000, 6-month, 9% note payable to purchase…
A: Golden Rules of Accounting: Account Debit Credit Personal Accounts the giver the receiver…
Q: Sheridan Company lends Marigold Company $48000 on January 1 and, accepts a 4-month, 3% promissory…
A: Adjusting entries are those journal entries which are passed at the end of accounting period. The…
Q: On May 1, 2024, a company lends $120,000 to one of its main suppliers and accepts a 12-month, 8%…
A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: On October 10, 2020, Flounder Co. entered into a contract with Belisle Inc. to transfer Flounder’s…
A: Journal Entries in the Books of Flounder Co. for the Year 2020 15th Dec. 2020 Belisle Inc.…
Q: On October 1, 2022, Bramble Company issued an $828000, 9%, 9-month interest-bearing note. If the…
A: Under accrual basis accounting, the expenses and revenues are recorded in the period they are…
Q: Sarasota Company borrowed $34,800 on November 1, 2025, by signing a $34,800, 9%, 3-month note.…
A: Journal entries are those which are recorded for every transaction which takes place during the…
Q: December 11, 2019, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign…
A: Journal is the book of original entry in which all the financial transactions of the business are…
Q: On November 1, 2024, New Morning Bakery signed a $204,000, 6%, six-month note payable with the…
A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…
Q: On August 15, 2022, Pharoah Company signs a $248000, 7%, twelve-month note payable. Which of the…
A: Accrued Interest: The unpaid interest amount that has incurred on the financial obligation till a…
Q: Ellsworth Enterprises borrowed $486,000 on an 12%, interest-bearing note on September 30, 2020.…
A: Since the fiscal year-end on December 31, so adjusting entry for the interest for three months from…
Q: Adjusting journal entry for: On November 1st, 2018, FTS purchased a certificate of deposit from…
A: In the given situation, assuming that the financial year ends on 31st December, for 2018 we need to…
On July 1, 2020, Tamarisk, Inc. pays $20,100 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31.
For Tamarisk, Inc., journalize and
7/31 Dr - Prepaid Insurance/Cr - Cash $20,100
12/31 Dr - Insurance Expense/Cr Prepaid Insurance $3,350
My question is- how is the 12/31 amount $3,350?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- On June 1, 2021, Demer Consulting provides services to a customer for $150,000. To pay for the services, the customer signs a three-year, 12% note. The face amount is due at the end of the third year, while annual interest is due each June 1. Required: 1. Record the acceptance of the note on June 1, 2021.2. Record the interest collected on June 1 for 2022 and 2023, and the adjustment for interest revenue on December 31, 2021, 2022, and 2023.3. Record the cash collection on June 1, 2023. Record the acceptance of the note. please do a journal entry for each date. listed below. There should be 7 in total Date Jun 01, 2021 dec 31,2021 jan 01,2022 dec 31,2022 jun 01,2023 dec 31,2023 jun 01,2023Flint Family Importers sold goods to Tung Decorators for $40.800 on November 1, 2022, accepting Tung's $40,800, 6-month, 6% note. Prepare Flint's November 1 entry, December 31 annual adjusting entry, and May 1, 2023, entry for the collection of the note and interest. (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 Record journal entries in the order presented in the problem) Date 11/1/22 v 12/31/22 5/1/23 Account Titles and Explanation Notes Receivable Sales Revenue terest Receivable Interest Revenu Cath Interest Receivable interest Revenue Debit 40.800 408 42400 Credit 40.800 40800 400 814On August 1, 2021, Avonette, Inc., sold equipment and accepted a six-month, 9%, $50,000 note receivable. Avonette's year-end is December 31. Which of the following accounts will Avonette credit in the journal entry at maturity on February 1, 2022, assuming collection in full? O A. Interest Receivable B. Cash OC. Interest Payable O D. Note Payable
- On September 1, 2021, Allied Moving Corp. borrows $110,000 cash from First National Bank. Allied signs a six-month, 5% note payable. Interest is payable at maturity. Allied's year-end is December 31. 1., 2. & 3. Record the following transactions for the note payable by Allied Moving Corp. (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 nearest dollar amount.) View transaction list Journal entry worksheet < 1. 2 Record the issuance of notes payable. Date Sep 01, 2021 3 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general jourMidshipmen Company borrows $18,000 from Falcon Company on July 1, 2024. Midshipmen repays the amount borrowed and pays interest of 12% (1%/month) on June 30, 2025. Required: 1.&2. Record the necessary entries in the Journal Entry Worksheet below for Midshipmen Company. 3. Calculate the 2024 year-end adjusted balances of Interest Payable and Interest Expense (assuming the balance of Interest Payable at the beginning of the year is $0).Ivanhoe Factory provides a 2-year warranty with one of its products which was first sold in 2020. Ivanhoe sold $909,800 of products subject to the warranty. Ivanhoe expects $124,480 of warranty costs over the next 2 years. In that year, Ivanhoe spent $73,090 servicing warranty claims. Prepare Ivanhoe's journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs. (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 amount is entered. Do not indent manually.) Date 2020 During 2020 12/31/20 Account Titles and Explanation (To record sales) (To record warranty claims) Debit Credit
- On July 1, Alton Co. issued an $74,700, 10%, 120-day note payable to Seller Co. Assume that the fiscal year of Alton Co. ends July 31. Using a 360-day year in your calculations, what is the amount of interest expense recognized by Alton in the current fiscal year? When required, round your answer to the nearest dollar. Select the correct answer. a-$1,246 b-$1,869 c-$7,470 d-$623At December 31, 2021, Sheridan Company had a five-month, 5%, $79,200 note receivable that was issued on October 1, 2021. Interest and principal are payable at maturity on March 1, 2022. Prepare the December 31, 2021, adjusting entry for accrued interest. Prepare the January 1, 2022, reversing entry.On November 1, 2021, Aviation Training Corp. borrows $44,000 cash from Community Savings and Loan. Aviation Training signs a three-month, 6% note payable. Interest is payable at maturity. Aviation’s year-end is December 31. Required: 1.-3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Record the adjusting entry for interest. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2021
- On June 30, 2024, the Esquire Company sold some merchandise to a customer for $68,000. In payment, Esquire agreed to accept a 9% note requiring the payment of interest and principal on March 31, 2025. The 9% rate is appropriate in this situation. Required: Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2024 interest accrual, and the March 31, 2025 collection. If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over- or understated in 2024 and 2025?On August 1, 2021, Turner Manufacturing lends cash and accepts a $24,000 note receivable that offers 10% interest and is due in nine months. How would Turner record the year-end adjustment to accrue interest in 2021? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) A. Interest Revenue 1,050 Interest Receivable 1,050 B. Interest Receivable 2,400 Interest Revenue 2,400 C. Interest Receivable 1,050 Interest Revenue 1,050 D. Interest Receivable 1,000 Interest Revenue 1,000On January 2, 2020, Crane Company sells production equipment to Fargo Inc. for $46,000. Crane includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Crane incurs costs related to warranties of $930. At December 31, 2020, Crane estimates that $620 of warranty costs will be incurred in the second year of the warranty. Prepare the journal entry to record this transaction on January 2, 2020, and on December 31, 2020 (assuming financial statements are prepared on December 31, 2020). (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.)