On July 1, 2022, X Co. borrowed $520,000 at 7%. The loan is repayable over 5 years in annual installments of $126,823. The first payment is due June 30, 2023. Record the borrowing on 7/1/22 and the payments on 6/30/23 and 6/30/24. You can assume interest is not accrued. Show your work. Do Not Abbreviate. Date Account Titles Debit Credit July 1, 2022 June 30, 2023 June 30, 2024

On July 1, 2022, X Co. borrowed $520,000 at 7%. The loan is repayable over 5 years in annual installments of $126,823. The first payment is due June 30, 2023. Record the borrowing on 7/1/22 and the payments on 6/30/23 and 6/30/24. You can assume interest is not accrued. Show your work. Do Not Abbreviate. Date Account Titles Debit Credit July 1, 2022 June 30, 2023 June 30, 2024

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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Lewis Company had the following transactions involving notes payable. July 01, 2022 ... Borrows $50,000 from First Bank signing a 9-month, 8% note. Nov 01, 2022 ... Borrows $60,000 from Lyon Bank signing a 3-month, 6% note. Dec 31, 2022 ... Prepares annual adjusting entries. Feb 01, 2023... Pays principal and interest to Lyon Bank. Apr 01, 2023... Pays principal and interest to First National Bank. July 01 2022 Nov 01 2022 Dec 31 2022 Feb 01 2023 Apr 01 2023 On day note is created - is there interest exp? Or just the principal? DR 8% int $ DR 6% int $ CR Total $ 2 diff entries! A single CR to for each entry. Each entry pays note principal (can't be more), PLUS interest (and any publ from adj). Interest calc: Principal x Interest % = a full years int exp. BUT, notes often less than a full year. "Term" (length) of the note tells how many of the 12 months (or 365 days) apply. Eliminate any Int Pobl if ADJ were needed cuz some INT EXP is 2022, and some is 2023.
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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. 7.500
Record the following journal entries: 1) Record issuance of note 2) Record the adjusting entry for interest 3) Record the repayment of the note and payment t of interest maturity
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