On January 1, Gemstone Company obtained a $165,000, 7%, 10-year installment note from Guarantee Bank. The note requires annualpayments of $23,492, with the first payment occurring on December 31. The first payment consists of interest of $11,550 and principalrepayment of $11,942. The journal entry for the payment would include aOa. debit to Interest Expense for $23,492Ob. debit to Cash for $11,942Oc. debit to Notes Payable for $11,942Od. credit to Interest Payable for $11,550

Notes payable refer to a written agreement between two parties. Under this agreement, the lender…

On January 1, Gemstone Company obtained a $165,000, 7%, 10-year installment note from Guarantee Bank. The note requires annu payments of $23,492, with the first payment occurring on December 31. The first payment consists of interest of $11,550 and princip repayment of $11,942. The journal entry for the payment would include a Oa. debit to Interest Expense for $23,492 Ob. debit to Cash for $11,942 Oc. debit to Notes Payable for $11,942 Od. credit to Interest Payable for $11,550

On January 1, Gemstone Company obtained a $165,000, 7%, 10-year installment note from Guarantee Bank. The note requires annu payments of $23,492, with the first payment occurring on December 31. The first payment consists of interest of $11,550 and princip repayment of $11,942. The journal entry for the payment would include a Oa. debit to Interest Expense for $23,492 Ob. debit to Cash for $11,942 Oc. debit to Notes Payable for $11,942 Od. credit to Interest Payable for $11,550

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On June 8, Williams Company issued an $80,400, 7%, 120-day note payable to Brown Industries. Assuming a 360-day year, what is the maturity value of the note? Round your answer to the nearest whole dollar. Oa. $5,628 Ob. $82,276 Oc. $80,400 Od. $86,028
please help me
On the first day of the fiscal year, a company issues $45,000, 8%, six-year installment notes that have annual payments of $9,734. The first note payment consists of $3,600 of interest and $6,134 of principal repayment.a. Journalize the entry to record the issuance of the installment notes.b. Journalize the first annual note payment.
On January 1, Year 1, Wedekind Company issued a $170,000, five-year, 8% installment note to Shannon Bank. The note requires annual payments of $42,578, beginning on December 31, Year 1. Journalize the entries to record the following transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Jan. 1 Issued the note for cash at its face amount. Dec. 31 Paid the annual payment on the note, which consisted of interest of $13,600 and principal of $28,978. Dec. 31 Paid the annual payment on the note, including $6,074 of interest. The remainder of the payment reduced the principal balance on the note.
On the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a sevenyear,7% installment note to Soros Bank. The note requires annual payments of $15,772, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $5,950 and principal repayment of $9,822.a. Journalize the entries to record the following:1. Issued the installment note for cash on the first day of the fiscal year.2. Paid the first annual payment on the note.b. Explain how the notes payable would be reported on the balance sheet at the end of the first year.
On the first day of the fiscal year, a company issues $32,000, 11%, five-year installment notes that have annual payments of $8,658. The first note payment consists of $3,520 of interest and $5,138 of principal repayment. Question Content Area a. Journalize the entry to record the issuance of the installment notes. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - Question Content Area b. Journalize the first annual note payment. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - - Select - - Select - Adieu Company reported the following current assets and current liabilities for two recent years: Dec. 31, 20Y4 Dec. 31, 20Y3 Cash $1,020 $960 Temporary investments 1,200 1,400 Accounts receivable 820 940 Inventory 2,200 2,600 Accounts payable 1,900 2,200 a.…
On October 1, Eder Fabrication borrowed $79 million and issued a nine-month promissory note. Interest was discounted at issuance at a 11% discount rate. Prepare the journal entry for the issuance of the note and the appropriate adjusting entry for the note at December 31, the end of the reporting period Record the issuance of the note. Record the interest adjusting entry
Martinez Co. borrowed $55,707 on March 1 of the current year by signing a 60-day, 12%, interest-bearing note. Assuming a 360-day year, when the note is paid on April 30, the entry to record the payment should include a:
3. On January 1, Esly Company obtained a $125,000, 7-year 5% installment note from Farmers Bank. The note requires annual payments of $21,602, with the first payment occurring on the last day of the fiscal year. (a) Prepare an amortization schedule for Year 1 and Year 2 Date January 1 carrying amount Note payment Interest expense Decrease in Notes payable (b) Journalize the following entries: a. Issued the installment notes for cash on January 1. Dec 31 carrying amount
On June 8, Alton Co. issued an $73,184, 9%, 120-day note payable to Seller Co. Assuming a 360-day year for your calculations, what is the maturity value of the note? When required, round your answer to the nearest dollar.
On January 1, Year 1, Zero Company obtained a $52,000, 4-year, 6.5% installment note from Regional Bank. The note requires annual payments of $15,179, beginning on December 31, Year 1. The December 31, Year 3 carrying amount in the allocation of periodic payments table for this installment note will be equal to:- $6,463 $13,000 $14,252 $0
Weavile Corporation takes out a $100,000 cash loan from its bank by signing a 30%, 10-month promissory note on July 1. The journal entry at the note's maturity will include: Group of answer choices Debit to Interest Expense for $10,000 Credit to Cash for $100,000 Debit to Interest Expense for $30,000 Debit to Interest Expense for $15,000