How much is the latest carrying amount of the note before the fire incident?
Q: At December 31, 2021, Wynne Company reported Accounts Receivable of $45,000 and Allowance for…
A: Step 1: Show formula version of the solution sheet for a better understanding of the calculations:…
Q: In order to preserve cash, Splish Inc. negotiated with one of its supplies for amount owing on…
A: A zero-coupon note or zero-interest note, is a type of financial instrument that is issued without…
Q: At December 31, 2019, one of TOCINO Company’s credit customers, HOTDOG Trading, is experiencing…
A: Introduction to Impairment loss Impairment loss generally occurs when a business asset suffers a…
Q: SAOD Company sold merchandise for $300,000 to RELANSE Company on January 1, 2021 and received a…
A: As per the term of restructuring on Dec 31, 2021, the Relanse Company will pay 210000 at the end of…
Q: 18. On December 31, 2010, Chelsea Co. provides a service for its customer Villas Boas Co. inexchange…
A: First step is to compute the Amount of note receivable to be recorded on 31.12.10 through present…
Q: At the end of 2020, Bonita Company has accounts receivable of $960,000 and an allowance for doubtful…
A: Ans. Sometimes the debt due to the company is determined that it will not be received and hence it…
Q: BTS Company accepted a P400,000 face value, six-month, 9% note dated May 15 from a customer. After…
A: Interest accrued = face value of note x rate of interest x no. of months/12 = P400,000 x 9% x 2/12…
Q: Employee income taxes withheld Cash balance at first state Bank Cash overdraft at Harbor Bank…
A: Answer is option a) 8,100,000
Q: What entry should National American Bank make to record this loss?
A: National American Bank should record the entry for the loss of $239,300.
Q: Metlock Supply Co. has the following transactions related to notes receivable during the last 2…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Swifty owes $ 3.6 million that is due on February 28. The company borrows $ 3000000 on February 25…
A: Since the $3.6 million note is repayable within 12 months from December 31 on the coming February…
Q: The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021, the end of its…
A: Here discuss about the details of adjustment entry which are made for the current and non current…
Q: At December 31, 2012, Bloomfield company reported Accounts Receivable of $54,000 and Allowance for…
A: Net realizable value of accounts receiavbles = Gross accounts receivable - Allowance for doubtful…
Q: On 1 November, 2016, Eastern Company wrote off an account receivable of HK$10,300 as worthless…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: On November 1, 2017, Larkspur, Inc. accept a $ 300,000 note receivable from a customer. Larkspur…
A: Unrealized loss on notes receivables = 300,000 - 285,000 = 15,000
Q: Assume that Kingbird Company has recently fallen into financial difficulties. By reviewing all…
A: When financial institutions like Banks are probable that a loan including principal or interest or a…
Q: Abbra Bank agrees to reduce the principal to $1.7 million and require interest only in the third…
A: Journal entry records the accounting transactions of a business in a journal book. All the business…
Q: In 2020, Maxton Company sold its services on credit in the amount of $988,400. Total cash…
A: Bad debt expense is amount not able to recovered by entity or individual from its debtors.
Q: interest income
A: Interest income on note receivable = Value of note receivable * Rate of interest
Q: P.Q. Enterprises operates a wholesale business. At the 2020 year end, the accounts receivable…
A: When the chances of non-collection of account receivables increase they are written off as bad…
Q: LL Bean has a credit balance of $1,000 in the allowance for doubtful accounts on December 31, 2020.…
A: Balance in allowance for doubtful accounts before adjustment = allowance for doubtful accounts on…
Q: At the end of 2024, Garcia Company’s balance for Accounts Receivable is $11,000, while the company’s…
A: Allowance for uncollectible accounts is a contra asset account It is shown on the balance sheet…
Q: Seerden Servicing monitors its accounts receivable carefully. A review determined that a customer,…
A: In accounting, bills of exchange are documented promises to pay a certain amount on a specified…
Q: Sheridan Corporation borrowed $62,400 on November 1, 2020, by signing a $63,600, 3-month,…
A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: Mooncake Corp.’s accounts payable at December 31, 2018, totaled P800,000 before any necessary…
A: Accounts payable is a short-term debt and a liability on a balance sheet where a business owes money…
Q: On December 31, 2021, when its Allowance for Doubtful Accounts had a zero balance, Pina Co.…
A: Solution: journal entries on December 31, 2021, May 11, 2022, and June 12, 2022 are as under:
Q: Analysis of accounts receivable reveals that with two exceptions, all appeared collectible as at…
A: Adjusting and Non Adjusting Event Adjusting events are occasions where proof of conditions will be…
Q: Larkspur Corporation borrowed $78,000 on November 1, 2025, by signing a $79,755, 3-month,…
A: Journal entries are part of a bookkeeping system that records day-to-day business-related monetary…
Q: During 2021, PUMPKIN Company experienced financial difficulties and is likely to default on a…
A: Total payable amount = Principal + Interest payment for year 2021…
Q: At January 1, 2024, NCI Industries, Incorporated was indebted to First Federal Bank under a…
A: A journal entry is a financial transaction recorded in a company's accounting system. It is the…
Q: On January 1, 2017, Cheyenne Company issued a $1,224,300, 5-year, zero-interest-bearing note to…
A: A note is a financial instrument which is issued to pay a certain sum of money at a specified date.…
Q: on january 1, cooper company accepted a one-year note for $5,000 at 4% from one of its customers.…
A: Journal entries are the transactions that are recorded in the primary book. They are chronological…
Q: Bramble Corp. has the following account balances at December 31, 2021: Notes payable ($47,000 due…
A: Current liabilities: Liabilities that are due to be paid within one year or within one operating…
Q: Tasa Incorporated after having experienced financial difficulties in 2021, negotiated with a major…
A: Book value of equipment = Original cost - Accumulated depreciation Gain/Loss on sale of equipment =…
Q: On April 17, 2016, Westside Co. accepted a 65,000, 8%, 90-day note from a customer. On June 11, the…
A: A note receivable is a financial instrument that represents a written promise to receive a specific…
Q: Blossom Equipment Sales Company, which sells only on account, had a $120,000 balance in its Accounts…
A: The concept related to the given case in relation to accounting for expected credit losses is guided…
Q: On December 31 , 2018 Nicholas Co. is in financial difficulty and cannot pay a note due that day .…
A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: 9) At the end of its 2020 fiscal period, Barton's Books, a sole proprietorship, has ending accounts…
A: Accounts Receivable While using the Accounts receivable management it is provide the provision of…
Step by step
Solved in 3 steps
- Marks Company sold goods to Birch Company totaling $51,830 during 2020. When Birch was unable to meet Marks’normal terms, Marks accepted from Birch a $60,000, 3-year non-interest-bearing note due 1/1/24. (Marks has acceptednotes in the past in settlement of open accounts.)Required:(a) Prepare Marks’ journal entry on 1/1/21 when the note was signed.(b) Prepare a table which shows the amortization of bond discount over the life of the note.(c) What is the 12/31/22 adjusting entry that will be recorded by Marks?(d) What is the purpose of the journal entry at 12/31/22?On December 31, 2020, Hoosier Inc. establishes an allowance for doubtful accounts of 3% of its accounts receivable balance of $180,000. Hoosier Inc. decides on March 15, 2021, not to pursue collection of Smith’s $1,000 account. The likelihood of collection does not support further collection efforts. What is the net realizable value (NRV) of accounts receivable before and after the write-off of the Smith account?ABC Company has an outstanding receivable of P1,000,000 as of December 31, 2020. A test of collectability of the receivable showed that P700,000 is currently collectible and not impaired; P300,000 has been outstanding more than the required period for similar transaction and objective evidence showed that only P150,000 is considered realizable; the remaining receivable balance has been outstanding for 2 years and the company estimates that none of which will be realized. What amount should the account receivable is reported in the December 31, 2020 balance sheet? A. P700,000 B. P850,000 C. P800,000 D. P758,000
- Splish Corporation borrowed $58,500 on November 1, 2020, by signing a $60,000, 3-month, zero-interest-bearing note. Prepare Splish's November 1, 2020, entry; the December 31, 2020, annual adjusting entry; and the February 1, 2021, entry. (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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record interest) (To pay note)Cool Corporation’s accounts payable at December 31, 2020 amounted to P5,400,000 before any necessary year-end adjustmentsrelating to the following transactions:➢ On December 28, 2020, Cool wrote and recorded checks to creditors totaling P2,000,000 causing an overdraft of P500,000 inCool’s bank account at December 31, 2020. The checks were mailed on January 11, 2021.➢ On December 29, 2020, Cool purchased and received goods for P750,000, terms 2/10, n/30. Cool records purchasesusing the net method. The invoice was recorded and paid on January 5, 2021.➢ Goods shipped FOB destination on December 21, 2020 from a vendor to Cool was received on January 3, 2021. The invoicecost was P325,000.At December 31, 2020, what amount should Cool report as total accounts payable?Merry Company's checkbook balance at December 31, 2021 was P190,000. In addition, Merry Company held the following items in its safe on that date.*Check payable to Merry Company amounting to P65,000 dated January 2, 2022 in payment of a sale made in December 2021, was included in December 31 checkbook balance.*Check payable to Merry Company was deposited on December 15, but returned by the bank on December 22 stamped "DAIF." The check was redeposited by Merry Company on December 27, 2021. No entry was made in the books to record the return and the redeposit of this P20,000 check.*Check drawn on Merry Company's account, payable to a vendor, was dated and recorded on December 28. This check amounting to P15,000, however, was not yet mailed to the payee as of December 31, 2021.What is the correct amount shown as Cash on Merry Company's December 31, 2021 statement of financial position?
- 18. Dole Corp.'s accounts payable at December 31, 2012, totaled $650,000 before any necessary year-end adjustments relating to the following transactions: On December 27, 2012, Dole wrote and recorded checks to creditors totaling $350,000 causing an overdraft of $100,000 in Dole's bank account at December 31, 2012. The checks were mailed out on January 10, 2013. On December 28, 2012, Dole purchased and received goods for $150,000, terms 2/10, n/30. Dole records purchases and accounts payable at net amounts. The invoice was recorded and paid January 3, 2013. Goods shipped f.o.b. destination on December 20, 2012 from a vendor to Dole were received January 2, 2013. The invoice cost was $65,000. At December 31, 2012, what amount should Dole report as total accounts payable? a. $1,212,000. b. $1,147,000. c. $900,000. d. $800,000.Excerpts from the 2020 financial statements of Finley Ltd., a service company, follow: Service revenue $240,000 Accounts receivable 68,000 Allowance for bad debts 3,400 Total current assets 105,000 Total current liabilities 65,000 Net income 15,000 Dividends 5,000 Bad debt expense 3,400 Auditors from Price and Company reviewed the financial records of Finley and found that a credit sale of $10,000 (for services rendered), which was included in the service revenue amount above, should not have been recognized until January 20, 2021. The auditors also noted that a more reasonable estimate of future bad debts would be 10 percent of the accounts receivable balance. The auditors have informed Finley’s management that the audit opinion will be qualified if Finley does not adjust the financial statements accordingly. Question: What amount would the year-end Allowance for Bad Debts, Accounts Receivable balance, Current Ratio and Service Revenue be if Finley made the…Ali Coffee Bean assumes that due to Corona, at the end of September 2020 there will be bad debts of $5,000,000 from accounts receivable belonging to Budi's Coffee Shop amounting to $20,000,000. It turned out that on October 21, 2020, Budi's Coffee Shop stated that they were unable to pay their receivables amounting to $1,000,000, so the CEO of Ali Coffee Bean allowed to write-off the receivables. As Ali Coffee Bean's financial staff, make:a. Journal Entry for write-off of Budi's Coffee Shop.b. What was the cash realizable value of Ali Coffee Shop's receivables prior to the write-off of Budi's Coffee Shop receivables in September?c. What is the cash realized value of Ali Coffee Shop's receivables after the write-off of Budi's Coffee Shop receivables?
- Max Corp. sold goods for $36,000 on July 17, 2020, and accepted a 12%, 90-day note. On August 1, the note was sold to a bank at a 15% discount rate. Required: a. Compute the proceeds. Assume a 360-day year. b. If the maker dishonored the note at maturity, prepare the entry for Max Corp. assuming $75 of bank protest fees. If an amount box does not require an entry, leave it blank.Blue Corporation borrowed $62,000 on November 1, 2025, by signing a $63,395, 3-month, zero-interest-bearing note. Prepare Blue's November 1, 2025, entry; the December 31, 2025, annual adjusting entry; and the February 1, 2026, entry. (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. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit CreditOn August 31, Latty Co. partially refinanced $900,000 of its outstanding 10% note payable made one year ago to Dugan State Bank by paying $900,000 plus $90,000 interest, having obtained the $990,000 by using $262,000 cash and signing a new one-year $800,000 note discounted at 9% by the bank. Instructions (1) Make the entry to record the partial refunding. (2) Prepare the adjusting entry at December 31, assuming straight-line amortization of the discount
