On December 31, 2023, Bramble Link Corporation received a four-year, 6%, $764,000 bank loan. The terms provide for payment of the bank loan with semi-annual instalment payments of $108,837 principal and interest, starting on June 30. Bramble has a March 31 year end and records adjusting entries annually.
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: 1. Costco Wholesale Corporation borrows $640,000 on September 1, 2021. Costco signs a nine- month,…
A: Formula: Interest amount = Notes payable amount x Time period x Interest rate.
Q: DAM Corporation, a lending institution, provided a loan to LAP company for $5,000,000 on Januray…
A: Loan origination fees include but are not limited to fees charged to the borrow as prepaid…
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: unland Resort Corp. issued a 20-year, 6%, $274,000 mortgage note payable to finance the construction…
A: The practice of capturing commercial transactions for the first time in the books of accounts is…
Q: Prepare the appropriate journal entries through the maturity of each liability.
A: Journal Entry: It means recording transaction into the books of account when transaction occurred…
Q: On January 1, 2021, Corvallis Carnivals borrows $17,000 to purchase a delivery truck by agreeing to…
A:
Q: On January 1, Gemstone Company obtained a $165,000, 7%, 10-year installment note from Guarantee…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: On April 1, 2023, DMH Inc. signed a $111,000, zero-interest-bearing, six-month promissory note. The…
A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: How much is the impairment loss on the receivables?
A: The impairment loss on the receivables is the loss occurred whenever there is a greater value of…
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: Bill's Barber shop signed a one-year 7% bak loan payable in the amount of 5,000 on April 1,…
A: Adjusting entries is defined as the changes that are made to the journal entries that have been…
Q: On January 1, Year 1, Beatie Company borrowed $400,000 cash from Central Bank by issuing a…
A: Amortization schedule of interest and principal payment for 5 periods is as under:
Q: McLaughlin Inc. operates with a June 30 year-end. During 2017, the following transactions occurred:…
A: Balance sheet: It is a overview of a company's financial position at a specific point in time. It…
Q: On January 1st, year one, zero company obtained a 52,000, for year, 6.5% installment note from…
A: Note payable is a form of liability for the business on which it has to make regular interest…
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: On January 1, Gemstone Company obtained a $165,000, 7%, 10-year installment note from Guarantee…
A: Notes payable refer to a written agreement between two parties. Under this agreement, the lender…
Q: On November 1, 2024, Dual Systems borrows $140,000 to expand operations. Dual Systems signs a…
A: Step 1: The journal entries for issuance and payment of notes payable are passed as follows:-…
Q: On October 1, 2023, Parton Industries borrowed $12 million cash to provide working capital. The loan…
A: The objective of the question is to calculate the interest expense for the note that will be…
Q: On October 1, 2021, Oberley Corporation loans one of its employees $24,000 and accepts a 12-month,…
A: Using accrual basis accounting, the revenue is earned and recorded in the period it is actually…
Q: A Company issues four-year bonds with a $114,000 par value on January 1, 2021, at a price of…
A: Interest expense = 114000 x 5% x 6/12 = 2850 bond amortisation = (114000-109870)/8 = 516.25
Q: On November 1, 2021, Ayayai Corp, which uses a calendar year as its fiscal year, signs a $28200, 8%,…
A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…
Q: Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of…
A: Beginning Notes Payable Interest Expense Repaid Principal on Notes Payable Ending Notes Payable…
Q: Colson Company has a line of credit with Federal Bank. Colson can borrow up to $375,000 at any time…
A:
Q: On November 1, 2019, Norwood borrows $200,000 cash from a bank by signing a five-year installment…
A: Amortization schedule of loan: It can be defined as a table that shows the expense of interest,…
Q: On November 15, 2018, Jenco signed a four-year, $100,000 note payable to Vicksburg State Bank for…
A: The installment payable for the installment is computed by dividing the value of the note by the…
Q: 1) On October 1, 20x1, Metro Bank loaned $8,000,000 and received a 5-month promissory note with 10%…
A: Note is kind of instrument which are commonly used by the lender and borrower at the time of giving…
Q: On October 1, 2024, Oberley Corporation loans one of its employees $44,000 and accepts a 12-month,…
A: A loan to an employee means any sum of money that is lent to him, which can be paid back by him…
Q: c. How will the annual note payment be reported in the Year 1 income statement? of $ would be…
A: Interest expenses of $5720 will be in Income Statement in Year 1.
Q: On January 1, 2024, Carla Vista Corp. borrows $12,600 by signing a 3-year, 6% note payable. The note…
A: When a note is repayable in three annual fixed principal payments, it means that the total principal…
Q: ABC Company issued ten-year P1,000,000 interest bearing Promissory Note at the beginning of the…
A: Note payable is a liability on which interest is payable according to aggreement. It can be current…
Q: On January 1, 2021, Nantucket Ferry borrowed $14,000,000 cash from BankOne and issued a four-year,…
A: Borrowings refers to a financial transaction wherein a borrower (any person or company) approaches a…
Q: On January 1, 2024, Oriole Corp. borrows $16,800 by signing a 3-year, 6% note payable. The note is…
A: The objective of the question is to prepare the journal entries for the borrowing of money by Oriole…
Q: On September 1, 2022, Accounts receivable in the amount of $900,000 were assigned as collateral to…
A: Answer:- Journal entry meaning:- The act of maintaining or creating records of any transactions,…
Q: On January 1, 2018, King Inc. borrowed $190,000 and signed a 4-year, note payable with a 10%…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Required: 1. Compute the amount of each of the four equal payments. (Note: Use Table B.3 in Appendix…
A: Notes payable is an amount that is issued by a company in exchange of an amount borrowed. It is…
Q: On October 1, 2023, Corporation 1 issued a $100,000 note payable to Corporation 2. The note carries…
A: Note receivable refers to a written promise for the amounts to be received within a stipulated…
Q: Metlock Co. receives $380,000 when it issues a $380,000, 15%, mortgage note payable to finance the…
A: To calculate the remaining balance of the mortgage note payable for Metlock Co. as of December 31,…
Q: On the first day of the fiscal year, Shiller Company borrowed $22,000 by giving a five-year, 12%…
A: Notes payable: Notes payable can be defined as an instrument where a borrower promises to repay the…
Q: On January 1, 2018, the Merit Group issued to its bank a $41 million, five-year installment note to…
A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…
Q: Larkspur, Inc. receives $260,400 when it issues a $260,400, 10% mortgage note payable to finance the…
A: Journal: Recording of a business transactions in a chronological order.
Q: On June 2021, A Corporation loaned $1,000,000 from a bank, payable in 10 equal instalments. The…
A: A liabilities account in balance sheet is classified as current liabilities when such obligation is…
Step by step
Solved in 4 steps
- On November 1, 2019, Norwood borrows $410,000 cash from a bank by signing a five-year installment note bearing 9% interest. The note requires equal payments of $105,407 each year on October 31. Required:1. Complete an amortization table for this installment note.2. Prepare the journal entries in which Norwood records the following:(a) Accrued interest as of December 31, 2019 (the end of its annual reporting period).(b) The first annual payment on the note.On January 1, 2018, King Inc. borrowed $190,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $47,569 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.) If an amount box does not require an entry, leave it blank. Jan. 1 Cash ✔ Note Payable Dec. 31 Note Payable Interest Expense Cash ✓ ✔ ✓On the first day of the fiscal year, Shiller Company borrowed $33,000 by giving a seven-year, 8% installment note to Soros Bank. The note requires annual payments of $6,404, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $2,640 and principal repayment of $3,764. Journalize the entries to record the following: a1. Issued the installment note for cash on the first day of the fiscal year. If an amount box does not require an entry, leave it blank. Cash fill in the blank 9d174cf85026fb7_2 fill in the blank 9d174cf85026fb7_3 Notes Payable fill in the blank 9d174cf85026fb7_5 fill in the blank 9d174cf85026fb7_6 a2. Paid the first annual payment on the note. If an amount box does not require an entry, leave it blank. Interest Expense fill in the blank 6e673f01702302e_2 fill in the blank 6e673f01702302e_3 Notes Payable fill in the blank 6e673f01702302e_5 fill in the blank…
- Showtime, Inc. borrows $160,000 by issuing an 8%, 5-year note on January 1, 2020. Showcase must make payments of principal and interest every 3 months, beginning December 31, 2024. The note will be fully paid at maturity on Decembet 31, 2024. The company's fiscal year ends on December 31. Prepare the journal entries at January 1, 2020, and March 31, 2020. Prepare the Journal Entry on March 31, 2020 1/1/20 Cash 160,000 Long Term Note Payable 160,000 3/1/20 Interest Expense ?? Long Term Note Payable ?? Cash ??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…On January 1, 2018, Nantucket Ferry borrowed $14,000,000 cash from BankOne and issued a four-year,$14,000,000, 6% note. Interest was payable annually on December 31. Prepare the journal entries for both firmsto record interest at December 31, 2018.
- On December 1, 2024, Modern Dining Products borrowed $97,000 on a 6%, 10-year note with annual installment payments of $9,700 plus interest due on December 1 of each succeeding year On December 1, the principal amount was recorded as a long-term note payable What amount of the note payable will be shown as current portion of Long-Term Note Payable on the balance sheet as of December 31, 2024? (Round your answer to nearest whole number) OA. $19,400 OB. $15,520 OC. $9,700 OD. $5,820At the beginning of the year, your company borrows $33,600 by signing a six-year promissory note that states an annual interest rate of 9% plus principal repayments of $5,600 each year. Interest is paid at the end of the second and fourth quarters, whereas principal payments are due at the end of each year. How does this new promissory note affect the current and non-current liability amounts reported on the classified balance sheet prepared at the end of the first quarter? 10 Multiple Choice Increase current llabilities by $6,356.00; increase non-current llablities by $33,600 Increase current liabilities by $3,024; increase non-current liabilities by $33,600 Increase current liabilities by $6,356.00; Increase non-current liabilities by $28,000 Increase current liabilities by $756.00, increase non-current labilities by $33,600On 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
- Please provide answer in text (Without image)On the first day of the fiscal year, Shiller Company borrowed $26,000 by giving a three-year, 12% installment note to Soros Bank. The note requires annual payments of $10,952, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $3,120 and principal repayment of $7,832. Journalize the entries to record the following: a1. Issued the installment note for cash on the first day of the fiscal year. If an amount box does not require an entry, leave it blank. a2. Paid the first annual payment on the note. If an amount box does not require an entry, leave it blank. b. How would the notes payable be reported on the balance sheet at the end of the fiscal year?The following amortization schedule indicates the interest and principal that Chip’s Cookie Corporation (CCC) must repay on an installment note established January 1, 2021. CCC has a December 31 year-end and makes the required annual payments on December 31. Year Beginning Notes Payable Interest Expense Repaid Principal on Notes Payable Ending Notes Payable 1 39,000 2,730 8,784 30,216 2 30,216 2,115 9,399 20,817 3 20,817 1,457 10,057 10,760 4 10,760 753 10,760 0 Total 7,055 39,000 Use the amortization schedule to determine (a) the amount of the (rounded) annual payment; (b) the amount of interest expense to report in the year ended December 31, 2021 (Year 1); (c) the note payable balance at January 1, 2024; and (d) the total interest and total principal paid over the note’s entire life. (Round your answers to the nearest whole dollar amount.)