Can you help me with accounting questions Mountain Logistics Corp. borrowed $800,000 on September1, 2024, and signed a 12-month note bearing interest at 8%.Interest is payable in full at maturity on August 31, 2025.What amount should Mountain Logistics Corp. report asinterest payable at December 31, 2024?a. $64,000b. $21,333c. $16,000d. $32,000

Step 1: Definition of Interest PayableInterest Payable refers to the amount of interest expense that…

Answered: Mountain Logistics Corp. borrowed…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

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On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
Frisco Company borrowed $76,000 cash on October 1, 2022, and signed a nine-month, 9% interest-bearing note payable with interest payable at maturity. The amount of interest expense to be reported during 2023 is which of the following? $3,420. $2,565. $1,710. $1,026.
Kinsella Seed borrowed $207,000 on October 1, 2023, at 10% interest. The interest and principal are due on October 1, 2024. In addition to a debit to Note Payable for $207,000, what should the journal entry for repayment on October 1, 2024 include? Oa, Debit Interest Expense $5,175; debit Interest Payable $15,525; credit Cash $227,700 Ob. Debit Interest Expense $15,525; credit Cash $222.525. Oc. Debit Interest Expense $20,700, credit Cash $227,700. Od. Debit Interest Expense $15,525, debit Interest Payable $5,175, credit Cash $20,700
Jane's Donut Co. borrowed OMR 50,000 on March 1, 2018, and signed a one-year note bearing interest at 12%. Interest is payable in full at maturity on March 1, 2019. In connection with this note, how much Jane Co. would pay at March 31, 2019? Select one: A. 56,000 B. 55,000 C. 54,500 D. 57,000
Kinsella Seed borrowed $200,000 on October 1, 2022, at 10% interest. The interest and principal are due on October 1, 2023. What journal entry should be made with respect to the interest payment on October 1, 2023? a. Debit Cash 20,000; credit Interest Expense 15,000; credit Interest Payable 5,000. b. Debit Interest Expense 15,000; credit Cash 15,000. c. Debit Interest Expense 20,000; credit Cash 20,000. d. Debit Interest Expense 15,000; debit Interest Payable 5,000; credit Cash 20,000. Feedback Area
Question. During 2024, Royal Co. borrowed cash from another company by issuing notes payable as follows: 1. July 1, 2024, issued an 5 month, 7% note for $65,000. Interest and principal are payable at maturity. 2. November 1, 2024, issued a 3 month, 5% note for $40,200. Interest is payable monthly on the first day of the month. Principal is payable at maturity Royal has a December 31 fiscal year end and prepares adjusting entries on an annual basis. b) Prepare the necessary interest payment transactions for Royal in 2024 and 2025. Prepare separate adjusting entries for each note. Give an explanation for each entry and date used for a better understanding please.
User During 2024, Teal Co. borrowed cash from Martinez Company by issuing notes payable as follows: 1. June 1, 2024, issued an eight-month, 6% note for $82,800. Interest and principal are payable at maturity. 2. October 1, 2024, issued a three-month, 6% note for $52,800. Interest is payable monthly on the first day of the month. Principal is payable at maturity. Teal has a November 30 fiscal year end and prepares adjusting entries on an annual basis.
NYJ, Inc. borrowed $500,000 on November 1, 20X1, and signed a nine-month note bearing interest at 8%. Principal and interest are payable in full at maturity. In connection with this note, NYJ, Inc. should record interest expense in 20X2 in the amount of: Select one: a. $15,000 b. $20,000 c. $17,500 d. $30,000 e. $23,333
What is the maturity value of the note on these general accounting question?
65. Borrowed P100,000 by issuing a 1-year note with 7% annual interest to Century Savings Bank on October 1, 2021. What is the adjusting entry on December 31, 2021? A. Debit: Interest Expense and Credit: Interest Payable P1,750 B. Debit: Interest Expense and Credit. Interest Payable P7,000 C. Debit: Interest Expense and Credit: Interest Payable P3,500 D. Debit: Interest Expense and Credit: Interest Payable P5,250

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