On December 1, 2021, a company converted an existing account receivable in the amount of $6,000 to a notereceivable to allow an extended payment period. The note is due in three months and includes an annualinterest rate of 9%. The company prepares year-end financial statements on December 31 and recordedadjusting entries at that time. What entry should the company make on March 1, 2022, when the interest is paidat maturity?Multiple ChoiceDebit Cash and credit Notes Receivable for $6,135.Debit Cash for $6,135, credit Notes Receivable for $6,000, and credit Interest Revenue for$135.Debit Cash for $135 and credit Interest Revenue for $135.ОDebit Cash for $135, credit Interest Receivable for $45, and credit Interest Revenue for $90.

The question is the entry should the company make on March 1, 2022, when the interest is paid at…

Answered: On December 1, 2021, a company…

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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Hook Inc. accepts on April 1, 2022 a 120-day 12% note for $8,000 worth of accounts receivable past due. Calculate the amount of cash Hook should collect on the note at maturity.
Please record the following journal entries: A) Record issuance of a notes payable B) record first monthly payment C) Record Second Monthly payment
Analyze and review the following items and determine the appropriate journal entry. Bank Loan Interest on the bank loan is 2.50% annually. Interest has to be paid on January 7, 2021; for 2020. The entire amount of the loan ($4,000,000) was outstanding during the entire year. No payments were made during the year. Of the bank loan, $1,000,000 is due June 30, 2021 with the remainder due June 30, 2026. Notes Payable This is a short-term note. The company borrowed money from JRT Investments on October 31, 2020 for 3 months. The principal, along with interest is to be repaid on January 31, 2021. The interest rate is 1.8%.
on october 1, 2019, Island Jewelry company accepted a 4 -month, 10% note fot $2,400 in settlement of an overdue account receivable. Interest revenue was accrued thruogh december 31, 2019. island receives maturity value of the note at maturity. prepare the journal entry to record the collection.
On July 1, 2021, a company loans one of its employees $27,000 and accepts a eight-month, 8% note receivable. Calculate the amount of interest revenue the company will recognize in 2021 and 2022.
Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of $54,800 in its bank account. The note has a 3-year term, compounds 4 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…
Hi, How do i solve for the missing amounts?
Selkirk Company obtained a $16,000 note receivable from a customer on January 1, 2024. The note, along with interest at 12%, is due on July 1, 2024. On February 28, 2024, Selkirk discounted the note at Unionville Bank. The bank’s discount rate is 15%. Required: Prepare the journal entries required on February 28, 2024, to accrue interest and to record the discounting for Selkirk. Assume that the discounting is accounted for as a sale.
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%. Wha is the accumulated interest entry if 9 months have passed since note establishment? $1 $2,000,000 $9,360 $2,992.50
On December 1, 2021, abc Ltd. borrowed $180,000 from a local bank by signing a four-month, 5% interest-bearing note. All payments will be made at the note's maturity date. Assuming Parfait has a December 31 year-end, the adjusting journal entry on December 31 will include a: debit to Interest payable of $750. credit to Notes Payable of $750 credit to Interest payable of $750 credit to Interest expense of $750
Wellington Company had the following transactions involving notes payable. Nov. 1, 2020 Borrows $180,000 from Olathe State Bank by signing a 3-month, 10% note. Dec. 31, 2020 Prepares the adjusting entry. Feb. 1, 2021 Pays principal and interest to Olathe State Bank. Prepare journal entries for each of the transactions.
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