January 3 Purchased equipment for $55000, paying $45000 in cash and signing a 10000, 4-month, 10% note payable. souonalS
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- On January 1, $30,000 cash is borrowed from a bank in return for a 12% installment note with 36 monthly payments of $996 each. (1) Prepare an amortization table for the first three months of this installment note. (2) Record the entry for issuance of the note. (3) Record the entry for the first interest payment and for the second interest payment. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Record the entry for issuance of the note.Sunshine Service Center received a 120-day, 6% note for $40,000, dated April 12 from a customer on account. Assume 360 days per year. a. Determine the due date of the note. b. Determine the maturity value of the note. When required, round your answers to the nearest dollar.$fill in the blank df5724f79f8d02f_2 c. Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank. Aug. 10 Cash Cash Note Receivable Note Receivable Interest Revenue Interest RevenueDoid Acrobats lent $16,529 to Donaldson, Inc., accepting Donaldson's 2-year, $20,000, zero interest bearing note. The implied interest rate is 10% Prepare Dold's journal entries for the initial transaction. Notes Receivable 20.000 Cash 20,000
- Journal Entries (Note Issued, Renewed, and Paid)May 1 Purchased $5,000 worth of equipment from a supplier on account.June 1 Issued a $5,000, 30-day, 6% note in payment of the account payable.July 1 Paid $500 cash plus interest to the supplier, extending the note for 30 days from July 1.31 Paid the note in full.Aug. 10 Issued a $3,500, 60-day, 7% note to a supplier for purchase of merchandise.Prepare general journal entries for the transactions. Assume 360 days in a year.TORR, Inc. issues a $600,000, 9%, five-year note payable on January 1, 20X1. If the monthly payment is $12,455, what is the note's carrying value after the first month's payment is made on January 31, 20X1? Select one: a. $600,000 b. $592,045 c. $593,540 d. $595,500 e. $587,545On December 1, Watson Enterprises signed a $24,000, 60-day, 4% note payable as replacement of an account payable with Erikson Company. What is the journal entry that should be recorded by Watson Enterprises upon signing the note?
- On January 1, 20X1, Bouncy House, Inc. obtains a $50,000, 6 year, 8% installment note for the latest and greatest bouncy house. Bouncy House is required to make annual payments. The first payment occurs on December 31, 20X1. а. Calculate your annual payment amount. b. Create the loan amortization schedule (table). Record the first three journal entries. d. How much total interest does Bouncy House pay on this installment note? С.On March 1. LGE asks to extend its past-due $9,200 account payable to Tyson. Tyson agrees to accept $2,200 cash and a 180 day. 8% $7,000 note payable to replace the account payable. Note: Use 360 days a year. (0) Prepare the March 1 entry for LGE. (2) Prepare the August 28 entry for LGE when it pays the note and interest to Tyson. Please use the picture and insert where the answers go!!A company purchased new equipment for $31,000 with a two-year installment note requiring 5% interest. The required monthly payment is $1,360. After the first month’s payment, what is the balance of the note? a. $30,723. b. $29,640. c. $29,769. d. $30,871.
- A company purchased new equipment for $31,000 with a two-year installment note requiring 5% interest. The required monthly payment is $1,360. For the first month’s payment, what is the amount to record for interest expense? a. $120.b. $129.c. $68.d. $155.Gray Inc. lends White Ltd. $60,000 on April 1, accepting a 6-month, 4.5% interest note. Interest is due the first of each month, commencing May 1. Gray Inc. has an April 30 year-end. What adjusting entry should be made before the financial statements can be prepared? Cash 225 Interest Revenue. 225 Note Receivable. Cash. 60,000 60,000 Interest Receivable. Interest Revenue. 1,350 1350 Interest Receivable.. Interest Revenue. 225 225On January 1, $50,000 cash is borrowed from a bank in return for a 6% installment note with 24 monthly payments of $2,216 each. 1. Prepare the journal entry to record the issuance of the note.2. Prepare the journal entry to record the first monthly interest payment.