Hi expart Provide solution On November 1, Alan Company signed a 120-day, 8% note payable, with a face valueof $17,100. What is the adjusting entry for the accrued interest at December 31 on thenote?a. Debit interest expense, $228; credit interest payable, $228.b. Debit interest expense, $304; credit interest payable, $304.c. Debit interest expense, $456; credit interest payable, $456.d. Debit interest expense, $0; credit interest payable, $0.e. Debit interest expense, $152; credit interest payable, $152.

Step 1:Note payable is a liability on which interest is payable based on rate of interest given.…

Answered: On November 1, Alan Company signed a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
ACCRUED INTEREST RECEIVABLE The following is a list of outstanding notes receivable as of December 31, 20--: REQUIRED 1. Compute the accrued interest at the end of the year. 2. Prepare the adjusting entry in the general journal.
On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
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?
Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
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 November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $20,700. What is the adjusting entry for the accrued interest at December 31 on the note? (Use 360 days a year.) Multiple Choice No adjusting entry is required. Debit Interest Expense, $460; credit Interest Payable, $460. Debit Interest Payable, $690; credit Interest Expense, $690. Debit Interest Payable, $230; credit Interest Expense, $230. Debit Interest Expense, $345; credit Interest Payable, $345.
Subject : Accounting
On May 31, Baker Co. issued an $35,679, 8%, 120-day note payable to Samunck Co. Assume Baker's fiscal year ends on June 30. Assume a 360- day year for your calculations. a) What is the interest EXPENSE recognized by Baker in the current fiscal year? b) What is the maturity value of the note? c) What is the maturity date of the note?
On January 1, Luther Co. issued a $1,000,000, 8%, 5-year installment note payable. The first note payment consists of $250,456 principal plus interest due on January 1 of the next year. a. Journalize the adjusting entry at December 31 to accrue interest for the year. If an amount box does not require an entry, leave it blank. b. Show the account(s) and amount(s) and where it(they) will appear on a multiple-step income statement prepared on December 31.Interest Expense $ reported as Other expense. c. Show the account(s) and amount(s) and where it(they) will appear on a classified balance sheet prepared on December 31.
Erza Company has a P180,000, 10%, 90-day note receivable outstanding at December 31. The note is dated December 1, 2020. The appropriate adjusting entry is made to record accrued interest on the note at year-end. What is the correct adjusting entry on December 31 of the current year? Debit Interest Revenue and credit Interest Receivable, P4,500 Debit Interest Receivable and credit Interest Revenue, P1,500 Debit Interest Receivable and credit Interest Revenue, P4,500 Debit Interest Revenue and credit Interest Receivable, P1,500
Lone Star Company received a 90-day, 6% note for $80,000, dated March 12 from a customer on account. (Assume a 360-day year when calculating interest.) a. Determine the due date of the note. b. Determine the maturity value of the note. c. Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank. June 10

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