On July 1, 2023, Wildhorse Ltd. received a loan from its bank for $20,000 bearing interest at 6%. The loan is payable in two annual instalments of $10,909 principal and interest on June 30 each year. The company records adjusting journal entries annually at year end on December 31.
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- On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 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.)Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?
- Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. 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. Round to the nearest cent if required.
- 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 July 1, 2023, Wildhorse Ltd. received a loan from its bank for $20,000 bearing interest at 636. The loan la payable in two annual Instalments of $10,909 principal and Interest on June 30 each year. The company records adjusting journal entries annually at year and on December 31 Your answer la correct. Prepare an instalment payment schedule for the term of the loan. (Round answers to 0 decimal places, eg. 5,255) (b) Cash Payment 20909 20909 Textbook and Media List of Accounts Your answer la correct. Account Titles Cash Loan P Interest Exerc Interat Payable Internet Experas Rank Loan Payable Interat Pay Cash Interest Expens Interest Expens 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, g 5,275. Credit account titles are automatically indented when the amount is entered. Do…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. (a) Your answer is correct. Record the receipt of the bank loan on December 31, 2023, (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 debit entry before credit entry) Date Account Titles Dec. 31 Cash Bank Loan Payable Debit 764000 Credit 764000
- On February 1, 2022, the balance of the retained earnings account of Blue Power Corporation was $756,000. Revenues for February totaled $147,600, of which $138,000 was collected in cash. Expenses for February totaled $183,400, of which $151,200 was paid in cash. Dividends declared and paid during February were $16,800. Required: Calculate the retained earnings balance at February 28, 2022. Note: Amounts to be deducted should be indicated with a minus sign. Retained Earnings Balance, February 1, 2022 Revenues Expenses Net loss for February Dividends Balance, February 28, 2022 $ 0 0On January 1, 2024, Oriole Corp. borrows $16,800 by signing a 3-year, 6% note payable. The note is repayable in three annual fixed principal payments on December 31 of each year. (a) Question Part Score (b) Question Part Score (c) 2/2 6/6 Prepare journal entries to record the note and the first instalment payment. (List all debit entries before credit entries. 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. Record journal entries in the order presented in the problem.) Date > Account Titles DebitOn January 1, 2025, Cullumber Corporation issued $610,000 of 9% pay interest each July 1 and January 1. The effective-interest rate is 8%. Prepare the company's journal entries for (a) the January 1 issuance. (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Cullumber uses the effective-interest method. (Round answers to O decimal places, e.g. 38,548. If no entry is required. select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries) Account Titles and Explanation No. (a) (b) (c) bonds, due in 10 years. The bonds were issued for $651,453, and Date Debit Cre