On January 1, Year 1, Wedekind Company issued a $213,000, five-year, 4% installment note to Shannon Bank. The note requires annual payments of $47,846, beginning on December 31, Year 1. Required: Journalize the entries to record the following transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW joumals 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 Year 1 Jan Dec Year 4 Dec 1 31 31 Issued the note for cash at its face amount. Paid the annual payment on the note, which consisted of interest of $8,520 and principal of $39,326. Paid the annual payment on the note, including $3,610 of interest. The remainder of the payment reduced the principal balance on the note.

On January 1, Year 1, Wedekind Company issued a $213,000, five-year, 4% installment note to Shannon Bank. The note requires annual payments of $47,846, beginning on December 31, Year 1. Required: Journalize the entries to record the following transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW joumals 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 Year 1 Jan Dec Year 4 Dec 1 31 31 Issued the note for cash at its face amount. Paid the annual payment on the note, which consisted of interest of $8,520 and principal of $39,326. Paid the annual payment on the note, including $3,610 of interest. The remainder of the payment reduced the principal balance on the note.

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

Jenkins Inc. had the following transactions. Sep 1 Loaned $20,000 to an employee, who signed a 9-month, 9% note. Interest and principal will all be due on May 31. Dec. 31- Accrued interest on the note. (Round to the nearest whole dollar amount.) May 31 Received the interest on the note's maturity date. PE May 31 amount.) Required: Prepare the required journal entries. Use the MSWord link for the table to write your journal entries. After you have written the journal entries on the table in the MSWord document provided, Received the principal on the note's maturity date. (Round to the nearest whole dollar
Paper Company receives a $6,000, 3-month, 6% promissory note from Dame Company in settlement of an open accounts receivable. What entry will Paper Company make upon receiving the note?
Record the following transactions for Sheridan Company in the general journal. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) .2020 May 1 Dec. 31 Dec. 31 2021 May Received a $27,450, 12-months, 8% note in exchange for Mark Chamber's outstanding accounts receivable. Date Accrued interest on the Chamber note. Closed the interest revenue account. 1 Received principal plus interest on the Chamber note. (No interest has been accrued in 2021.) V > Account Titles and Explanation (To record accrued interest on note.) (To close the interest revenue account.) Debit Credit I
On November 1, Bahama Cruise Lines borrows $21 millon and Issues a six-month, 9% note payable. Interest Is payable at maturity. Record the Issuance of the note and the appropriate adjustment for Interest expense at December 31, the end of the reporting perlod. (If no entry Is requlred for a particular transactlon/event, select "No Journal Entry Required" In the first account fleld. Enter your answers In dollars, not In mlllons (I.e. 5 should be entered as 5,000,000).) View transaction list Journal entry worksheet 1 Record the issuance of the note. Note: Enter debits before credits. Date General Journal Debit Credit November 01 Record entry Clear entry View general jourmal
The following notes receivable transactions occurred for Harris Company during the last three months of the Current year. (Assume all notes are dated the day the transaction occurred.) 1. Prepare the journal entries to record the preceding note transactions and the necessary adjusting entries on December 31. (Assume that Harris does not normally sell its notes and uses a 360-day year for the purpose of computing interest. Round all calculations to the nearest penny.) 2. Show how Harris' notes receivable would be disclosed on the December 31 balance sheet. (Assume these are the only note transactions encouutered by Harris during the year.)
On May 22, Jarrett Company borrows $8,800, signing a 90-day, 8%, $8,800 note. What is the journal entry made by Jarrett Company to record the transaction? Multiple Choice Debit Cash $8,800; credit Accounts Payable $8,800. Debit Accounts Payable $8,800; credit Notes Payable $8,800. Debit Cash $8,976; credit Notes Payable $8,976. Debit Cash $8,800; credit Notes Payable $8,800. Debit Notes Receivable $8,800; credit Cash $8,800.
Arvan Patel is a customer of Bank's Hardware Store. For Mr. Patel's latest purchase on January 1, 2018, Bank's Hardware issues a note with a principal amount of $490,000, 11% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Bank’s Hardware Store for the following transactions. If an amount box does not require an entry, leave it blank. A. Note issuance. B. Subsequent interest entry on December 31, 2018. C. Honored note entry at maturity on December 31, 2019.
Danali Corporation borrowed $400,000 on October 1. The note carried a 13 percent interest rate with the principal and interest payable on May 1 of next year. Prepare the following journal entries. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet
Harper Company recently experienced a temporary delay in cash collections and needed to borrow $204,000 on November 1 of the current year to pay trade accounts payable. The 6-month, 3% note and interest are due on May 1 of the following year. Harper has a December 31 fiscal year-end. What are the required journal entries to record the issuance of the note, accrued interest, and the payment of principal and interest at maturity? Begin by preparing journal entry to record the issuance of the note. (Record debits first, then credits. Exclude explanations from any journal entries.) Account November 1
On October 1, Dutta Incorporated borrowed $82 million and issued a nine-month promissory note. Interest was discounted at issuance at a 13% 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. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.
On December 1, Watson Enterprises signed a $24,000, 60-day, 4% note payable as replacement of an account payable with Erikson Company. What is the journal entry that should be recorded by Watson Enterprises upon signing the note?
On the first day of the fiscal year, a company issues $60,000, 7%, five-year installment notes that have annual payments of $14,633. The first note payment consists of $4,200 of interest and $10,433 of principal repayment. Required: Journalize 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. 20Y1 Jan. 1 Installment notes are issued 20Y2 Jan. 1 First annual note payment is made