On January 1, 20X1, Weislin Company borrowed $24,000 to purchase equipment. The loan is to be repaid plus interest of 10% per year, on December 31, 20X2. What adjusting entry is needed on December 31, 20X1?
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On January 1, 20X1, Weislin Company borrowed $24,000 to purchase equipment. The loan is to be repaid plus interest of 10% per year, on December 31, 20X2. What
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- Record (1) the receipt of $20,000 cash from the loan on July 1, 2023; (2) the accrual of Interest on December 31, 2023; (3) the First Instalment payment on June 30, 2024; and (4) the accrual of Interest on December 31, 2024. (Round answers to decimal places, eg: 5.275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List all debit entries before credit entries. te 14 (c) Account Titles Cash Banc Loan Payabl Interest Expens Interat Pay Interat Exerc Banc Loan Payabl Interest Pay Cash Interest Expens Interac Textbook and Media List of Accounts Debit WILDHORSE LTD. Statement of Financial Position (Partial) 20000 600 600 9707 600 Credit 20000 600 10POP Attempts: 12 of 15 used What amounts would Wildhorse report as current and non-current in the abilities section of its statement of Financial position on December 31, 2023? (Round answers to 0…On September 1, Year 1, Laredo Company purchased equipment making a down payment of $15,500 cash and signing a one- year note payable on the $22,500 balance. The note carried an interest rate of 6%, and all interest was to be paid on the maturity date. Which of the following correctly shows the combined effect of the purchase as well as the accrual of interest on December 31, Year 1? Net Income (450) ΝΑ (450) (450) None of the above Operating (450) (450) ΝΑ ΝΑ Cash Flows Investing (15,500) ΝΑ (15,500) (15,500) Financing ΝΑ 22,500 22,500 ΝΑA company purchased new equipment for $31,000 with a two-year installment note requiring 5% interest. The required monthly payment is $1,360. After the first month’s payment, what is the balance of the note? a. $30,723. b. $29,640. c. $29,769. d. $30,871.
- On October 1, 2023 PT. Leci borrowed $500,000 from Pineapple Bank by signing a 10-month, 6% note. If on December 31 PT. Leci makes adjusting entries, then on August 1, 2024 what is the amount of interest expense recorded by PT. Lychee when paying off the notes? a. 17.500 b. 21 000 c. 9.000 d. 30.000 e. 7.500Gray Inc. lends White Ltd. $60,000 on April 1, accepting a 6-month, 4.5% interest note. Interest is due the first of each month, commencing May 1. Gray Inc. has an April 30 year-end. What adjusting entry should be made before the financial statements can be prepared? Cash 225 Interest Revenue. 225 Note Receivable. Cash. 60,000 60,000 Interest Receivable. Interest Revenue. 1,350 1350 Interest Receivable.. Interest Revenue. 225 225complete please
- On January 1, a company purchases equipment with a $5,000 down payment and $5,000 due on January 1 for each of the next 5 years. Assuming an interest rate of 8%, at what cost (rounded to the nearest dollar) should the equipment be recorded? $30,000 $24,964 $21,561 $19,964Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $670,000. The terms of the loan are 3.8% annual interest rate and payable in 8 months. Interest is due in equal payments each month. A. Compute the interest expense due each month. If required, round final answer to two decimal places. B. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. If required, round final answers to two decimal places. If an amount box does not require an entry, leave it blank. Oct. 20 May 20Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $640,000. The terms of the loan are 3.1% annual interest rate and payable in 8 months. Interest is due in equal payments each month. A. Compute the interest expense due each month. If required, round final answer to two decimal places. 1,653.33 B. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. If required, round final answers to two decimal places. If an amount box does not require an entry, leave it blank. 1,653.33 Oct. 20 Interest Expense Cash May 20 Cash 1,653.33 640,000 1,653.33 641,653.33
- 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 yearAdditional information:i. Supplies as at 31st December 2019, RM34,500.ii. Insurance expense at the rate of RM850 per month.iii. Yearly depreciation on the non current assets as below:• furniture and fittings, RM5,175• motor vehicles, RM20,400.iv. Interest expense RM5,295 still payable by end of the yearv. Estimated doubtful debt at the rate of 2% of accounts receivable Question: 1. Prepare the Statement of Profit or Loss and Other Comprehensive Income for the year ended 31st December 2019. 2. Prepare the Statement of Financial Position as at 31st December 2019.On June 1, Chetney Company Ltd. borrows $60,000 from First Bank on a 6-month, $60,000, 8% note. The note matures on December 1. (a) Prepare the entry on June 1. (b) Prepare the adjusting entry on June 30. (c) Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30. (d) What was the total financing cost (interest expense)?
