Note Payable of $6,000 represents a loan that was taken on June 1, 2019 at a yearly interest rate of 10%. The journal entry recorded for the receipt of the loan on June 1, 2019 was: Debit Interest Expense $6,000, credit Interest Payable $6,000 Debit cash $1,200, credit Interest payable $1,200 Debit cash $6,000, credit note payable $6,000 Debit Interest Expense $600, credit Note Payable $600

Q: Samco signed a 9-year note payable on January 1, 2025, of $540,000. The note requires annual…

A: Detailed explanation:Face value of the note $ 540,000 ,  interest rate 6% , issued January 1, 2025…

Q: Kinsella Seed borrowed $207,000 on October 1, 2023, at 10% interest. The interest and principal are…

A: Journal entries are used to record the accounting transactions in chronological order under double…

Q: Mermaid Bank granted a loan to a borrower on January 1, 2020. The interest on the loan is 12%…

A: CARRYING VALUE It refers to the worth of an asset or a debt at the time it was purchased. Carrying…

Q: On April 1, 2020, Mountain Company sold merchandise and received a $19,200, three-year,…

A: A noninterest bearing note of $19,200 has been received by the company for the merchandise which has…

Q: Calculate the interest accrued for each of the following notes payable owed by Boundas Resorts as of…

A: Roof Point: From October 01, 2019 to December 31 , 2019 = 3 months Principal amount = $ 90000 Coupon…

Q: On December 31, 2022, the lender on a $5,400, 120-day, 12% note dated November 5, 2022, will…

A: The interest receivable is the amount of revenue which is earned but not received yet.  It is…

Q: On January 1, 2021, Cullumber Corp. borrows $9,000 by signing a 3-year, 3% note payable. The note is…

A: Period Cash payment Interest expense at 3% Reduction of principal Principal balance Jan 1, 2021…

Q: On October 12, 2020, Golf Co. received from one of its customers, Ping Co., a $30,500, 8% 90 day…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: Patrick Trash Haulers borrowed 42,000 on June 1, 2020. The loan had an interest rate of 5%. The…

A: Notes payable are promissory notes and negotiable instruments. In this one party agrees to pay a…

Q: Prepare journal entries to record the following transaction: On January 1, 2020, Shoppers Inc.…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Wildhorse Co. issued a five-year interest-bearing note payable for $324000 on January 1, 2019. Each…

A: Balance sheet is the financial statement which involves the total debt, liabilities, assets and…

Q: Discount Mart borrows $400,000 on November 1, 2020 with a 6-month loan that has an annual interest…

A: Interest Payable on December 31, 2020 = Amount borrowed x rate of interest x no. of months /12 =…

Q: China Bank granted a loan to a borrower on January 1, 2023. The interest rate on the loan is 10%…

A: To calculate the effective interest rate (EIR) of the loan, use the formula for the EIR of a loan.…

Q: On November 1, 2018, A-1 Products borrowed $64,000 on a 5%, 5-year note with annual installment…

A: Loan Installment is that amount which is paid by the borrower to lender. It includes the interest…

Q: Recording Entries for Note Payable Lacey Corp. issued a three-year, $17,500 note with an 8% stated…

A: Introduction: A journal entry is a business transaction that is recorded in a company's accounting…

Q: Problem #1: Assume Johannsen Company borrows $100,000 from Evans Bank on September 1, 2019, signing…

A: The amount of borrowing is recognized in the liability side of the balance sheet and the interest…

Q: b. On September 1, 2019 the Robbem Co. received a $30,000 note receivable from a customer in…

A: December 31, 2019 = Face value of note x rate of interest x No. of months  / 12 = $30,000 x 12% x…

Q: Lappy Company disclosed the following information on December 31, 2021:   Accounts Payable P20,000…

A: Accrued interest on December 31, 2021 = Face value of notes payable x rate of interest x no. of…

Q: On January 1, 2024, Lechner Company borrowed $120,000 on a 4%, 5-year note with annual installment…

A: A note payable is one of the instruments used by a company to acquire more funds from the market for…

Q: Answer the following questions regarding a four-month promissory note for $1,850 issued June 1,…

A: A promissory note is a financial instrument that is used for the payment of a loan at a future date.…

Q: Prepare journal entry On 3/1/2020, $30,000 cash was borrowed on a two-year 8% note payable.…

A: Calculation of Interest to be accrued at  year end   =Principal x interest rate x time/12   = 30000…

Q: Oriole Company borrowed $790,000 on December 31, 2019, by issuing an $790,000, 9% mortgage note…

A: Lets understand the basics. When amount is borrowed against the notes then it needs to repaid with…

Q: Compute for the total interest income to be recognized in 2020 in relation to the four note…

A: Promissory Note:- It is a written document where the writer has to pay the agreed amount to the…

Q: Analyze and review the following items and determine the appropriate journal entry.  Bank Loan…

A: Journal entries are the entries to be recorded in the accounting books of the business for all the…

Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms…

A: Introduction: Journals: Recording of a business transactions in a chronological order. Each and…

Q: the pita pit borrowed 197000 on november 1 2021 and signed a six month note bearing interest at 12%.…

A: Interest expense = Principal amount x Interest rate x Time period

Q: Record the journal entry: Jack has $90,000 two-year note payable to first USA Bank and Trust, dated…

A: Here USA bank is the drawer and  Jack is the drawee

Q: On Jan 1st, 2022, Saturn borrows $2,000,000 from Orange Bank and pledges $2,500,000 of its accounts…

A: Some banks allow to pledge a portion of accounts receivable as collateral to provide loan. In case…

Q: In connection with this note, how much Jane Co. would pay at March 31, 2019?

A: Given information is: Jane's Donut Co. borrowed OMR 50,000 on March 1, 2018, and signed a one-year…

Q: Sarah Co. borrowed OR200,000 on January 1, 2019, and signed a two-year note bearing interest at 12%.…

A: Notes payable: Notes payable can be defined as the promissory note issued by the company against the…

Q: On March 15, 2021, a six-month promissory note for $1,175 with interest at 4% was issued. Compute…

A: Present value of the note = Present value of principal + Present value of interest payments

Q: On October 1, 2025, Conway, Inc. borrowed $220,000 by signing a nine-month, 10% note payable.…

A: Note Payable was signed on 01 Oct 2025 for  = 220000 Interest Rate = 10% Total Interest =…

Q: prepare a three-year (monthly) amortization schedule to classify the notes payable into its current…

A: Company has bought the office equipment for $15,000 but that purchase has been made through the…

Q: Analyzing Interest-Bearing and Noninterest-Bearing Notes Consider the following three separate…

A: Bond valuation is the process of determining the fair or intrinsic value of a bond. The value of a…

Q: On October 1, 2020 John's Barber Shop borrowed $14,000 at 8% interest, with principal and interest…

A: Interest will be booked on proportionate basis, which means that the interest shall be booked for…

Q: (b) Indicate the amount of mortgage note payable to be reported as a current liability and as a…

A: Introduction: The liabilities of a corporation are listed on its balance sheet, which is a common…

Q: On November 1, 2019, Provincial Importers loaned $10,000 cash to Clayton Schaffer on a one-year, 5…

A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…

Q: s date was 12%.

A: First of all we need to understand the basic meaning of current asset. Current asset are those asset…

Q: Required Information [The following information applies to the questions displayed below] On August…

A: Note payable is a promissory note, by which a borrower, borrows money and promise to pay it back…

Q: Sunland Company borrowed $760,000 on December 31, 2019, by issuing an $760,000, 9% mortgage note…

A: Journal entry is the entry that records the financial transactions initially. The transactions are…