Jurassic Jumpers Co. (JJ Co.) offers bungee jumping for those looking for an extreme outing. JJ Co. prepares annual financialstatements and has a December 31, 2023 year-end.a. On April 1, 2023, JJ Co. took out a five-year, $960,000 bank loan with an interest rate of 3%. Interest expense is paid on the first dayof each month.b. On July 1, 2023, JJ Co. issued a two-year, $69.250 Note Receivable with an interest rate of 4%. Interest income will be collected onJanuary 1 and July 1 of each year.e. On December 15, 2023, JJ Co. took a university student club bungee jumping for $4,850. The student club was invoiced onDecember 31, 2023 and paid JJ Co. on January 15, 2024.Required:Record the adjusting journal entries at December 31, 2023.

Adjusting Entries Date General Journal Debit Credit 31-Dec…

Answered: Jurassic Jumpers Co. (JJ Co.) offers…

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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Murphy Company purchased a new machine for $120,000 on December 31, 2020. They obtained a loan at the bank to finance the purchase. The terms of the loan were: 5 years, 5% interest, annual payments of principal and interest on December 31 of each year. a. Using the table provided, calculate the annual payment on the loan. b. Record the purchase of the new machine on December 31, 2020. c. Record the loan payment on December 31, 2021. d. Record the loan payment on December 31, 2022. d. Calculate the loan balance for December 31, 2022 after the payment. a. Using the table below, calculate the annual payment on the loan. Loan Amount…
On January 1, 2024, Evanston Corporation borrowed $7 million from a local bank to construct a new building over the next three years. The loan will be paid back in three equal installments of $2,570,460 on December 31 of each year. The payments include interest at a rate of 5%. Required: 1. Record the cash received when the note is issued. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answer in dollars, not millions (i.e., $5.5 million should be entered as 5,500,000).) View transaction list Journal entry worksheet < 1 Record the receipt of cash from the issue of the note payable. Note: Enter debits before credits. Date January 01, 2024 Cash Notos Davahin General Journal Debit Credit
Gallery located in Maine produces journals and photo albums. On May 1, 2021, G borrowed $250,000 from Midwest One Bank by signing a three year, 6% note payable. Interest is due each May 1. How much, if any, should interest expense be debited for on Dec 31, 2021? Fill in the blank. Omit $ sign.
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Annette Corp. issued a $330,000, three-year, zero-interest-bearing note payable to Agnes Corp. for equipment on April 30, Year 5. Annette would normally pay interest at 6%. Annette has a December 31 year-end and will repay the note with three equal yearly payments of $110,000. Annette Corporation follows IFRS. Instructions Prepare the following journal entries for Annette Corporation: (show all your work) 1. Record the note 2. December 31, Year 5 interest accrual 3. April 30, Year 6 payment 4. December 31, Year 6 interest accrual 5. April 30, Year 7 payment
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.4 million cash on October 1, 2024, to provide working capital for anticipated expansion. Precision signs a one-year, 9% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each company has a December 31 year-end. Required: 1. Prepare the journal entries on October 1, 2024, to record (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. 2. Record the adjusting entry on December 31, 2024, for (a) Precision Castparts and (b) Midwest Bank. 3. Prepare the journal entries on September 30, 2025, to record payment of (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entries on October 1, 2024, to record (a) the…
On September 1, Year 1, West Company borrowed $30,000 from Valley Bank. West agreed to pay interest annually at the rate of 5% per year. The note issued by West carried an 18-month term. West Company has a calendar year-end. What is the amount of interest expense that will be reported on West's income statement for Year 1? Multiple Choice $500 $375 $-0- $150
Date Transaction description Obtained a loan of $41,000 from Earth Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2021 and the principal of the loan is to be repaid on June 1, 2024. Paid the full amount owing to Sport Borders, Check No. 603. Payment fell within discount period. Paid the full amount owing to J. J. Spud, Check No. 604. Payment fell within discount period. Made cash sales of $4,184 during the first 3 days of the month. 2 3 Purchased 6 Downhill Snowboards from Good Sports for $180 each, terms 2/10, n/30. Sold 6 Tony Eagle Mark 3 Freestyle Skateboards to Balls 'n All for $204 each, Invoice No. 501. Purchased 5 Freestyle Snowboards with cash for $170 each, Check No. 605. Purchased 5 Pipe Dream surfboards from Sports 'R Us for $150 each, terms net 30. 4 4. 7 After completing this practice set page, you should know how to record basic transactions in the journals provided below and understand the posting process in the…
Ellen Company loaned $10,000 cash to Ann Company on August 1, Year 1. The loan had a one year term and a 6% annual interest rate. Principal and interest are payable at maturity. Match the amounts shown in the right column with Ellen Company's financial statement items that are shown in the left column. Assume that the company's balance sheet date is 31st December each year
On December 31, 2023, ABC company borrows $480,000 from the First Bank to start a business. The loan requires quarterly payments for 10 years and the interest rate on the loan is 12%. ABC company's quarterly payment is:
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