None On June 1, 2017, Kevin Co loaned anemployee $17,000 for 9 months. Theemployee signed a note. The annual interestrate on the note will be 6%. The employeewill pay the principal in and interest when itcomes due in 2018.When the note comes due in 2018, the creditto interest receivable will be

Step 1: Define Interest ReceivableThe business earns interest on various credit instruments during…

Answered: On June 1, 2017, Kevin Co loaned an…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

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Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
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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.)
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Keesha Co. borrows $200,000 cash on November 1, 2018, by signing a 90-day, 9% note with a face value of $200,000 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in 2018 and 2019 from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest at the end of 2018, and (c) payment of the note at maturity. (Assume no reversing entries are made.) Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 On what date does this note mature? On what date does this note mature?
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On June 1, 2017, Kevin Co loaned an employee $17,000 for 9 months. The employee signed a note. The annual interest rate on the note will be 6%. The employee will pay the principal in and interest when it comes due in 2018. When the note comes due in 2018, the credit to interest receivable will be