tell me why the answer is cash and notes payable (last solution on multiple choice) as opposed to the other ones Moss County Bank agrees to lend the Blossom Company $485000 on January 1. Blossom Company signs a $485000, 6%, 9-month note. The entry made by Blossom Company on January 1 to record the proceeds and issuance of the noteisO Cash485000Interest ExpenseNotes Payable21825506825O Cash485000Interest ExpenseNotes PayableInterest Payable2182548500021825O Interest Expense21825Cash463175Notes Payable485000O Cash485000Notes Payable485000

Notes payable are a form of loan or debt taken by the company. It will be recorded in the liability…

is Cash 485000 Interest Expense Notes Payable 21825 506825 Cash Interest Expense Notes Payable 485000 21825 485000 Interest Payable 21825 O Interest Expense 21825 Cash 463175 Notes Payable 485000 O Cash 485000 Notes Payable 485000

is Cash 485000 Interest Expense Notes Payable 21825 506825 Cash Interest Expense Notes Payable 485000 21825 485000 Interest Payable 21825 O Interest Expense 21825 Cash 463175 Notes Payable 485000 O Cash 485000 Notes Payable 485000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 2. Should you use a credit card when you can pay cash? Explain your reasons.

A: A credit card provides the holder access to funds for their use for which they have to pay later. It…

Q: Factoring" occurs when a business sells some of its accounts receivable to another insitution so it…

A: Accounts receivables are asset for a business because they can be converted into cash when they…

Q: REQUIRED: IDENTFY ONE ACCOUNT AND ONE ASSERTION FOR EACH CONDITION (IDENTIFY EITHER THE DEBIT OR…

A: Journal entries: It is the duty of the accountant to record business economic and non-economic…

Q: hy can not we wait to record transactions until the cash comes in or the cash goes out?

A: Accrual system of accounting says that every thing which is accrued has to be provided in books of…

Q: What is the normal balance of cash? Group of answer choices This is an ambiguous question debit…

A: Cash is a legal tender that can be used easily to buy something. It is the most liquid asset in the…

Q: Cash received from loans is a deposit other than customer payments. Group of answer choices True…

A: Cash received from the loan is considered as the current liabilities with the name of deposits.

Q: How can Notes Receivables be sold to another party? What is the process exactly? Please explain.

A: Notes receivables are current assets of a company. Many companies sell their products or services on…

Q: Match each of the following terms with the appropriate definitions. A. Maker of a note B. Bad debts…

A: Accounts receivables are those customer accounts to whom credit sales has been made, but amount not…

Q: When the amount of cash in the cash register exceeds the amount in the cash register tapes, the…

A: Cash Over and Short account is used to record the discrepancy between firms' reported sales figures…

Q: Which function of money allows individuals to make payment now in return for goods and services? A.…

A: Medium of exchange : Money serves as a medium of exchange. Money facilitates exchange of goods…

Q: Which one of the following statements is NOT true about account receivables? Select one: a. Account…

A: Accounts receivable: if sale is made on cash the supplier immediately collects the cash and no…

Q: The party who borrows money in a note payable is known as the: Multiple Choice Maker. Payee Issuer.…

A: Notes payable are written promises by a borrower to repay a specific amount of money to a lender on…

Q: Receivables are claims that are expected to be collected in cash, and are frequently classified as…

A: The term receivable comes when a business sells the merchandise to the customer on credit. The…

Q: True (t) or False (f) ______ Certificates of deposit are usually classified as cash on the balance…

A: A certificate of deposit (CD) is referred as a savings account that holds a fixed amount of money…

Q: Why should we count all cash at the same time?

A: It is necessary to count all cash at the same time to match physical balance with book balance. Cash…

Q: TRUE OR FALSE?

A: Liquid assets are the assets which can be converted in to cash with in a short period. These assets…

Q: True (t) or False (f) ______ Savings accounts are usually classified as cash on the balance sheet.

A: Savings accounts are considered as cash equivalents item such as easily convertible into cash.

Q: Th e assumption that the eff ects of transactions and other events are recognized when they occur,…

A: Given statement is: The assumption that the eff ects of transactions and other events are recognized…

Question

tell me why the answer is cash and notes payable (last solution on multiple choice) as opposed to the other ones

Moss County Bank agrees to lend the Blossom Company $485000 on January 1. Blossom Company signs a $485000, 6%, 9-month note. The entry made by Blossom Company on January 1 to record the proceeds and issuance of the note
is
O Cash
485000
Interest Expense
Notes Payable
21825
506825
O Cash
485000
Interest Expense
Notes Payable
Interest Payable
21825
485000
21825
O Interest Expense
21825
Cash
463175
Notes Payable
485000
O Cash
485000
Notes Payable
485000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

how can i distingush between bank accounts in qbo?
When referring to a note receivable or promissory note a.the note cannot be factored to another party b.the note may be used to settle an account receivable c.the note is not considered a formal credit instrument d.the maker is the party to whom the money is due
Which of the following credit checks would be considered a soft check? A. Vehicle loan application B. job application C. student loan application D. Credit card application I don't need explanation just the answer :)
Which side of the cash book records cash paid? a) Debit b) Credit c) Both sides d) None of the above
Petty Cash Fund Question, When it comes to making payments from the petty cash fund, why isn't there an accounting/journal entry for it? Please Explain.
Explain the primary goal of maintaining a cash book. Use a case study company of your own choice to demonstrate how such a goal (Your arguments must only relate to the main goal of a cash book) can be attained. Provide examples as approperiate Clearly explain how a cash book can be integrated in the extraction/development of the Trial Balance. Are trade discounts included in the cash book? If not or if yes, explain why Are credit transactions included in the cash book? If not or if yes, explain why Ledgers help to organize accounting information into categories normally known as ‘’classes’’. With examples explain the nature and differences between revenue and capital ledgers Using two revenue and capital ledgers, explain how you will treat them in the trial balance. Explain the treatment of the proprietor’s additional contribution to an already existing business. In addition, explain the underlying accounting principle you will apply in answering this question. Thames Cotton Mills…
Solve this problem with correct solution
The use of a debit card is similar to: Select one: a. Using currency Ob. Paying with a check c. Using a stored-value card d. Paying with credit card e. None of the above