None Ireland Corporation obtained a $40,000 note receivable from acustomer on June 30, 2016. The note, along with interest at 6%, is dueon June 30, 2017. On September 30, 2016, Ireland discounted the noteat Cloverdale bank. The bank's discount rate is 10%.What amount of loss should Ireland recognize on September 30, 2016?Please show calculations.A. $780B. $1,380C. $1,800D. $3,180

Step 1: Define NotesIt is of two types:1. Notes receivable: When the suppliers supply the goods on…

Answered: Ireland Corporation obtained a $40,000…

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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Liana Ltd bought a bank bill on 7 January 2012 for $976 751 and sold it on 3 March 2012 for $987 618. a. What simple interest rate (annual rate) did Liana Ltd earn? b. What annual effective interest rate did Liana Ltd earn? Please help to solve the following question with detailed steps and explanation. thank you
Can you please give me true answer this general accounting question?
On December 31, 2017, Pharoah Co. sold equipment to Shamrock, Inc. Pharoah Co. agreed to accept a $590,000 zero-interest- bearing note due December 31, 2019, as payment in full. Shamrock, Inc. incorporated in 2017 and had very little credit history at th time of the transaction with Pharoah. Therefore, at that time, Shamrock typically borrowed funds at a rate of 12%. Pharoah has a lo and positive credit history. Therefore, Pharoah has various lines of credit at 4%. (a) - Your answer is partially correct. Prepare the journal entry to record the transaction of December 31, 2017, for Pharoah Co. (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 fo the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25124.) Account Titles and Explanation Debit Credit Notes Receivable Sales Revenue
On December 31, 2017, Pharoah Co. sold equipment to Shamrock, Inc. Pharoah Co. agreed to accept a $380,000 zero-interest-bearing note due December 31, 2019, as payment in full. Shamrock, Inc. incorporated in 2017 and had very little credit history at the time of the transaction with Pharoah. Therefore, at that time, Shamrock typically borrowed funds at a rate of 11%. Pharoah has a long and positive credit history. Therefore, Pharoah has various lines of credit at 6%. Prepare the journal entry to record the transaction of December 31, 2017, for Pharoah Co
1. Journalize all entries for Symphony Bank related to the note for 2018 and 2019. 2. Which party has a a. note receivable? b. note payable? c. interest revenue? d. interest expense? 3. Suppose that Kara Perry defaulted on the note. What entry would Symphony record for the dishonored note?
6. On December 31, 2010, Chelsea Co. provides a service for its customer Villas Boas Co. inexchange for a promissory note requiring five annual payments of $1,000 each. The paymentsare to occur on December 31 of each year beginning on December 31, 2011. The note does notspecify any interest, and there is no market for the note. Based on the credit worthiness of VillasBoas Co. and the length of the note, it is estimated that Villas Boas Co. would have to pay 10%interest if it borrowed a similar amount from a bank. The amount of interest revenue recognizedby Chelsea for the year ended December 31, 2013 is:a. $174b. $249c. $317d. $347
Swifty Supply Co. has the following transactions related to notes receivable during the last 2 months of 2022. The company does not make entries to accrue interest except at December 31. Nov. 1 Loaned $30,000 cash to Manny Lopez on a 12 month, 10% note. Dec. 11 Sold goods to Ralph Kremer, Inc., receiving a $85,500, 90-day, 8% note. 16 Received a $87,840, 180 day, 10% note to settle an open account from Joe Fernetti. 31 Accrued interest revenue on all notes receivable. 1. Journalize the transactions for Swifty Supply Co. (Ignore entries for cost of goods sold. 2. Record the collection of the Lopez note at its maturity in 2023.
18. On December 31, 2010, Chelsea Co. provides a service for its customer Villas Boas Co. inexchange for a promissory note requiring five annual payments of $1,000 each. The paymentsare to occur on December 31 of each year beginning on December 31, 2011. The note does notspecify any interest, and there is no market for the note. Based on the credit worthiness of VillasBoas Co. and the length of the note, it is estimated that Villas Boas Co. would have to pay 10%interest if it borrowed a similar amount from a bank. The income tax rate for Chelsea is 35%.The effect of the entries made on December 31, 2014 on net income is:a. $0b. An increase of $113c. An increase of $162d. A decrease of $162
March 30 Loaned an officer of the company $45,000 and received a note requiring principal and interest at 8% to be paid on March 30, 2025. May 30 Discounted the $45,000 note at a local bank. The bank’s discount rate is 9%. The note was discounted without recourse and the sale criteria are met. What is the cash received on the discounted note? What is the loss on sale of note receivable?
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.
Assume that Toni Braxton Company has recently fallen into financial difficulties. By reviewing all available evidence on December 31, 2017. one of Toni Braxton's creditors, the National American Bank, determined that Tonì Braxton would pay back only 65% of the principal at maturity. As a result, the bank decided that the loan was impaired. if the loan is estimated to be $225,000 what entry should National American Bank make to record this loss? Bad Debt Expense 225,000 Allowance for Doubtful Accounts 225,000 Bad Debt Expense 146,250 Allowance for Doubtful Accounts 146,250
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.

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