What is the interest expense for December 31 ? On June 30, 2009, Sideways Movers had $243,000 in current assets and$211,000 in current liabilities. On August 1, 2009, Sideways received $50,000from an issue of promissory notes that will mature in 2012. The notes payinterest on February 1 at an annual rate of 6 percent. Sideways' fiscal year endson December 31. What is the interest expense for December 31?

Step 1: Definition of Interest ExpenseInterest expense represents the cost incurred by a company for…

Answered: On June 30, 2009, Sideways Movers had…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 24Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms...

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Similar questions

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.)
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.
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 October 1, 2009, a company received a one-year note receivable bearing an interest rate at market rate. The face amount of the note receivable and the entire amount of the interest are due on September 30, 2010. The interest receivable account at December 31, 2009 would consist of an amount representing a. Three months of accrued interest income B. Nine months of accrued interest income C. Twelve months of accrued interest income D. The excess at October 1, 2009 of the present value of the note receivable over its face value.
Tom’s Surf Company, whose fiscal year ends December 31, completed the following transactions involving notes payable:2018Nov 30 Purchased inventory display equipment by issuing a 60 day 10 percent note for $35,000.Dec 31 Made the end-of-year adjusting entry to accrue interest expense2019Jan 29 Paid off the balance of the notePrepare the journal entries for the above transactions. Round your answers for interest calculations to the nearest cent. Assume there are 365 days in the year.
On October 1, 2011, Coast Financial loaned Barr Corporation$300,000, receiving in exchange a nine-month, 12 percentnote receivable. Coast ends its fiscal year on December 31and makes adjusting entries to accrue interest earned on allnotes receivable. The interest earned on the note receivablefrom Barr Corporation during 2012 will amount to:a. $9,000. b. $18,000.c. $27,000. d. $36,000.
Hi, How do i solve for the missing amounts?
On August 1, 2021, Stucko Company borrowed $21,000 on an 8-month, 3%, short-term note payable. Which account will be credited on April 1, 2022, and for what amount? Stucko Company has a calendar year-end.
Sammy Company, a calendar-year company, has a 6% note receivable dated November 1, 2020 in the original amount of P3,000,000. Payments of P1,000,000 in principal plus interest on the outstanding balance are due annually on October 31, 2021, 2022 and 2023. How much is the interest revenue from the note for the year ended December 31, 2021?
Chang, Inc. issued a 120-day note in the amount of $360,000 on 12/16/17 with an annual rate of 5%. What amount of interest has accrued as of 12/31/17?
Example 4 (Notes Receivable): On November 30, 2020, James Co. lent money to Scott Co. and issued a 5-month, $120,000, 8% note receivable. Scott paid James the full amount of interest and principal on April 30, 2021. What is the journal entry for James Co. to record the issuance of the note receivable? What is the end-of-year adjusting journal entry for James Co. to record interest revenue earned as of December 31?
During 2024, Lane Co. borrowed cash from Greenberg Company by issuing notes payable as follows: 1. July 1, 2024, issued an eight-month, 4% note for $75,000. Interest and principal are payable at maturity. 2. November 1, 2024, issued a three-month, 5% note for $42,000. Interest is payable monthly on the first day of the month. Principal is payable at maturity. Lane has a December 31 fiscal year end and prepares adjusting entries on an annual basis. A) Prepare all necessary journal entries for Lane Co. to record the notes. B) Prepare the necessary interest payment transactions for Lane in 2024 and 2025. Prepare separate adjusting entries for each note. (Don't understand this part, please explain steps for the $ used and dates.) Date Account Titles and Explanation Debit Credit - - - - - - - - - - (To accrue interest on note issued July 1, 2024.) - - - - - (To accrue interest on note issued Nov. 1, 2024.) - - - - - - - -…

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