Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. Jasper's entry to record the collection of the note and interest at maturity should be: (Use 360 days a year.)
Q: Martinez Co. borrowed $69,589 on March 1 of the current year by signing a 60-day, 6%,…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Cerise Company would record a note payable of________, if the terms of the loan with a bank are as…
A: PRESENT VALUEPresent Value is the Current Value of Future Cash Flows at a Discounting Rate.Present…
Q: create the journal entries for myers co. on 8/2/20, myers loaned a supplier 80,000 in exchange…
A: Journal entries recording is the first step of accounting process, in which atleast one account is…
Q: What is the entry: someone lend money to my company $10,000 cash in exchange for a two-year, 6% note…
A: Cash: Cash is the money that is readily available in the form of currency. Since cash can be easily…
Q: Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of…
A: Step 1:Step 2:Step 3:Step 4:
Q: Kylah Enterprises signs a 3-month, noninterest-bearing note with a stated rate of 13.5% and a…
A: Given, Principal =$215,000 Interest =13.5% Computation of interest =$215,000 * 13.5% *3/12…
Q: Bull City Industries is considering issuing a $100,000, 7% note to a creditor on account. Assume a…
A: Interest Expense = Note payable amount * Interest Rate * Period
Q: Goldie Corporation takes out a $10,000 cash loan from its bank by signing a 15%, 9-month promissory…
A: A promissory note is a financial instrument that includes a written promise to pay a certain sum of…
Q: Harris Company borrows money from the Whitestar Bank and signs an interest-bearing promissory note.…
A: Interest Rate = Interest * 100 * 360 / (Days * Principal)
Q: Mike Co. borrowed $90,000 on July 1 of the current year by signing a 90-day, 6%, interest-bearing…
A: The financial transactions are initially recorded in the form of journal entry.
Q: Martinez Co. borrowed $71,059 on March 1 of the current year by signing a 60-day, 5%, interest-…
A: Interest = $71,059 x 5% x 60/360 = $592
Q: Singer Company has a line of credit with United Bank. Singer can borrow up to $469,500 at any time…
A: Calculation of interest amount for the month of January:Given, amount borrowed = $75,300Interest…
Q: Keesha Company borrows $230,000 cash on December 1 of the current year by signing a 90-day, 11%,…
A: The maturity date is the date when note is due for payment. The accrued interest is the interest due…
Q: A company lends its supplier $166,000 for 3 years at a 10% annual interest rate. Interest payments…
A: Lets understand the basics.Journal entry is the act of keeping records of transactions in an…
Q: Keesha Company borrows $215,000 cash on December 1 of the current year by signing a 90-day, 9%,…
A: Notes payable refers to the obligation of the company/individual to repay the sum within maturity…
Q: NYJ, Inc. borrowed $500,000 on November 1, 20X1, and signed a nine-month note bearing interest at…
A: The notes payable require the borrower company to pay interest expense. The interest expense is…
Q: Bridgeport Company has a line of credit with National Bank. Bridgeport can borrow up to $1,180,000…
A: Line of credit is a financial arrangement or financial facility which is provided by a bank or a…
Q: Martinez Co. borrowed $52,557 on March 1 of the current year by signing a 60-day, 12%,…
A: Notes payable is categorized as a negotiable instrument signed by the promisor who agreed to pay a…
Q: On January 1, Year 1, Mahoney Company borrowed $172,000 cash from Sun Bank by issuing a 5-year, 8%…
A: Please see the answer below ? Notes Payable: Long-term debt instruments issued by businesses as…
Q: Martinez Co. borrowed $69,569 on March 1 of the current year by signing a 60-day, 7%,…
A: From March 1 to April 30 = 60 days Interest is paid on the funds used by the business to generate…
Q: Colson Company has a line of credit with Federal Bank. Colson can borrow up to $375,000 at any time…
A:
Q: Required: (a) Calculate the present value of the note (PV).
A: The present value of the note is as follows. =Amount repaid(1+interest rate)=$10000(1+12%)= $ 8,929
Q: Martinez Co. borrowed $79,200 on March 1 of the current year by signing a 60-day, 9%,…
A: The interest expense is calculated as follows $79200 × 9% × 60/360 = $1188
Q: Martinez Co. borrowed $74,240 on March 1 of the current year by signing a 60-day, 12%,…
A: Given, Face value of the note = $74,240 Interest rate = 12% Period = 60 days
Q: Martinez Co. borrowed $69,589 on March 1 of the current year by signing a 60-day, 6%,…
A: Formula: Interest amount = Notes amount x Interest rate x Time period
Q: Martinez Co. borrowed $62,310 on March 1 of the current year by signing a 60-day, 8%,…
A: The journal recorded at the time payment is : Interest expense A/c Dr 831 -…
Q: Martinez Co. borrowed $54,000 on March 1 of the current year by signing a 60-day, 7%,…
A:
Q: Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: On September 1, 20X1, Chabon Corp. purchased machinery costing $20,000 by issuing a 12-month, 12%,…
A: Lets understand the basics. Management some time purchase asset using the loan. In that case if loan…
Q: Singer Company has a line of credit with United Bank. Singer can borrow up to $400,000 at any time…
A: Answer information:Step 1:Required 1:DateJournalDebitCreditJan 01Cash$80,000 Notes payable…
Q: Keesha Co. borrows $100,000 cash on November 1 of the current year by signing a 150-day, 10%,…
A: Notes Payable: Known as long-term obligations, notes payable represent the money a firm owes to its…
Q: On February 20th, a 5 month note for $3,700 was received by Lucky Company to settle an amount owing…
A: Interest is a amount which is paid by a borrower to the person from the money has been taken by him…
Q: The company has a mortgage note payable for $1,500,000 that comes due in year 3. this note is paid…
A: Lets understand the basics. Journal entry is required to make to record event and transaction that…
Q: JAB Consulting received a promissory note of $18,500 at 8% simple interest for 15 months from one of…
A: First we need to calculate maturity value of discounted note.The maturity value represents the total…
Q: On February 1, 2021, Miter Corp. lends cash and accepts a $1,000 note receivable that offe interest…
A: The interest revenue for the period is calculated from the date of borrowing to the date of…
Q: BBY Company loaned $66,116 to Orwell, Inc, accepting Orwell's 2-year, $80,000, zero-interest-bearing…
A: Discount on Notes receivable = Face value - Issue price = $80,000 - $66,116 = $13,884
Q: A company decides to obtain a small-business loan of $237,000. The financial institution from which…
A: The money can be borrowed and repaid in installments. The interest and principal portions are paid…
Q: Required information [The following information applies to the questions displayed below.] On…
A: An amortization schedule is presented as a table that outlines key loan characteristics like payment…
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- VinubhaiAdmire County Bank agrees to lend Bonita Brick Company $609000 on January 1. Bonita Brick Company signs a $609000, 8%, 9- month note. What entry will Bonita Brick Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30? O O Notes Payable Cash Notes Payable Interest Payable Cash Interest Expense Notes Payable Cash Interest Payable Notes Payable Interest Expense Cash 645540 609000 36540 36540 609000 24360 609000 12180 645540 645540 645540 645540Use the following information for item 40 and 41. On January 1, 2020, Golden Rams Company borrowed $100,000 from Albany State Bank and signed a five-year, 10% installment note. The note requires annual payments of $26,378, beginning on December 31, 2020. This payment consists of principal of $16,378 and interest of $10,000. The journal entry on December 31 would consist of a debit to Notes Payable for $10,000, debit to Interest Expense for $16,378, and a credit to Cash for $26,378. True False
- On January 1, Year 1, Mahoney Company borrowed $168,000 cash from Sun Bank by issuing a 5-year, 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, Year 1. The annual payment on the loan equals $42.077, What is the amount of principal repayment included in the payment made on December 31, Year 1? Multiple Choice Ο Ο Ο Ο $13,440 $37.467 $40,725 $28,637On February 1, 2021, Miter Corp. lends cash and accepts a $1,000 note receivable that offers 12% interest and is due in six months. How much interest revenue will Miter Corp. report during 2021? Multiple Choice O O O O $120. $240. $100. $60.Boyd Company has a line of credit with State Bank. Boyd can borrow up to $520,000 at any time over the course of the Year 1 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during Year 1. Boyd agreed to pay interest at an annual rate equal to 1 percent above the bank’s prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Boyd pays 6 percent (5 percent + 1 percent) annual interest on $72,000 for the month of January. Month Amount Borrowed or (Repaid) Prime Rate for the Month January $ 72,000 5% February 52,000 5 March (46,000) 6 April through October No change No change November (36,000) 6 December (22,000) 5 Boyd earned $37,000 of cash revenue during Year 1.Required Prepare an income statement, balance sheetand statement of cash…
- 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.Flounder, Inc. issued a $115,000, 4-year, 12% note at face value to Flint Hills Bank on January 1, 2025, and received $115,000 cash. The note requires annual interest payments each December 31. Prepare Flounder's journal entries to record (a) the issuance of the note and (b) the December 31 interest payment.Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of $51,800 in its bank account. The note has a 3-year term, compounds 5 percent interest annually, and requires an annual installment payment on December 31. Cucina Corporation has a December 31 year-end and adjusts its accounts only at year-end. Required: 1. Use an online application, such as the loan calculator with annual payments at mycalculators.com, to complete the amortization schedule. 2. Prepare the journal entries on (a) January 1, 2021, and December 31 of (b) 2021, (c) 2022, and (d) 2023. 3. If Cucina Corporation's year-end were March 31, rather than December 31, prepare the adjusting journal entry it would make for this note on March 31, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Use an online application, such as the loan calculator with annual payments at mycalculators.com, to complete the amortization schedule. (Do…
- On January 1, 2021, Nantucket Ferry borrowed $14,600,000 cash from BankOne and issued a four-year, $14,600,000, 8% note. Interest was payable annually on December 31. Prepare the journal entries for both firms to record interest at December 31, 2021.Boyd Company has a line of credit with State Bank. Boyd can borrow up to $500,000 at any time over the course of the Year 1 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during Year 1. Boyd agreed to pay interest at an annual rate equal to 1 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month, Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Boyd pays 6 percent (5 percent +1 percent) annual interest on $70,000 for the month of January. Amount Borrowed or (Repaid) $ 70,000 50,000 (42,000) No change (30,000) (20,000) Boyd earned $35,000 of cash revenue during Year 1. Month January February March April through October November December Income Statement Required Prepare an income statement, balance sheet, and statement of cash flows for Year 1. Service revenue Expenses…The financial statements of Bavarian Sausage Works (BSW) dated December 31, 2020, show $50,000 for "Note receivable." You learn that the company provided $50,000 cash to a customer (a new chain of hot dog stands) in exchange for a promissory note. The note was issued on January 1, 2019, bearing interest at 12% per year (which approximates the market interest rate), with principal and interest of $56,000 due on January 1, 2020. The hot dog chain has had numerous delays obtaining the required licences to operate on street corners. Consequently, on January 1, 2020, the chain and BSW renegotiated the promissory note so that the $56,000 in principal and interest would come due on January 1, 2022. Aside from the initial recording of the note receivable on January 1, 2019, BSW has not recorded any other journal entries relating to this note. Required Provide the necessary journal entries to correct BSW's accounts in 2019 and 2020.
