On October 1, 2016, a firm accepted a 4-month, 9% note for $32,000 from a customer with an overdue account balance. The accrued interest recorded for this note on December 31, 2016, is a. $2,880.00 b. $720.00 c. $240.00 d. No accrual is necessary

On October 1, 2016, a firm accepted a 4-month, 9% note for $32,000 from a customer with an overdue account balance. The accrued interest recorded for this note on December 31, 2016, is a. $2,880.00 b. $720.00 c. $240.00 d. No accrual is necessary

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%...

See similar textbooks

Related questions

Q: Given answer accounting questions

A: Step 1: Definition of Optimal Advertising ExpenditureOptimal advertising expenditure refers to the…

Q: I need answer of this question solution general accounting

A: Step 1: Definition of Residual Distribution ModelThe residual distribution model calculates…

Q: Financial accounting

A: Step 1: Define Absorption vs. Variable CostingIn absorption costing, all manufacturing costs are…

Q: Kingsman Inc. is developing a new process that it plans to sell. During 2019 and 2020, the company…

A: Capitalized costs are expenses that are added to the cost basis of a fixed asset on a company's…

Q: NONE

A: Explanation of Qualitative Characteristic Sequencing: Qualitative characteristic sequencing refers…

Q: Provide correct answer general Accounting question

A: Step 1: Define Capital GainThe profit from an asset's purchase and sale price is referred to as a…

Q: Madison manufacturing sold production solve this general accounting question

A: Step 1:Calculate the Book ValueStep 2:Calculate the Gain or Loss

Q: Job 786 was one of the many jobs started and completed during the year. The job required $8,400 in…

A: Explanation of Total Job Cost:Total Job Cost refers to the aggregate cost incurred in completing a…

Q: A share just paid a dividend of... Please solve this financial accounting problem

A: Step 1: Define Fair ValueThe value that represents a company's intrinsic value based on the…

Q: Solve it

A: We have given data : Particular Amount Accounts payable$14,500Buildings85,000Cash11,600Accounts…

Q: Financial accounting questions

A: Step 1: Define Accounts Receivable ManagementThe process of establishing limitations on choice of…

Q: Don't use ai given answer accounting questions

A: Step 1: Definition of Carrying Value and AmortizationCarrying Value: The carrying value of an asset…

Q: The exercise of professional judgement does NOT involve Select one: a. aggressive accounting. b.…

A: The question is asking which of the given options is not involved in the exercise of professional…

Q: The manana corporation had sales solve this accounting questions

A: Step 1: Define Days Sales OutstandingDays Sales Outstanding or DSO is a component of Cash Conversion…

Q: I want both answer

A: Explanation of Overhead Rate:The overhead rate is a calculation used in cost accounting to allocate…

Q: Answer? ? financial accounting

A: Step 1: Define Average Accounts ReceivableAverage accounts receivable is mean value of the accounts…

Q: Hello teacher please help me Accounting question

A: The Manufacturing Cycle Efficiency (MCE) is calculated as the ratio of value-added time to the total…

Q: Provide correct option general accounting

A: Step 1: Calculate the predetermined overhead rate per direct labor hour.Predetermined overhead rate…

Q: I need typing clear urjent no chatgpt used i will give 5 upvotes pls full explain with diagram

A: Step 1: Step 2:Step 3: Step 4:

Q: A taxpayer exchange a productive use machine solve this accounting questions

A: Step 1: Define Recognized GainA recognized gain is when an investment or asset is sold for more than…

Q: General accounting

A: Note: Missing Factory Overhead Rates*To calculate the factory overhead allocated, we would need the…

Q: 12 Which method is used when all fixed manufacturing costs and variable manufacturing costs are…

A: Absorption costing, also called full costing, is an accounting method that assigns all manufacturing…

Q: Chapter 6

A: Compute the direct materials and direct labor first.Direct materials = Raw materials issued to the…

Q: Purchased goodwill should be Select one: a. expensed as soon as possible against retained…

A: Goodwill is an intangible asset that arises when a buyer acquires an existing business. Goodwill…

Q: ????

A: Explanation of Fundamental Qualities:Fundamental qualities are the primary attributes that financial…

Q: Financial Accounting: A particular security's default risk premium is 1 percent. For all securities,…

A: The question requires the determination of the equilibrium rate of return.The equilibrium rate of…

Q: Question 5 Marks: BigBoss Inc. provides the following extracts from income statement for the year…

A: Explanation of Net SalesNet Sales refers to the total revenue earned from selling goods or services…

Q: Modiste Inc. Manufactures two kinds of bags - totes and satchels. Please answer the general…

A: Step 1: Define Predetermined Overhead RateThe predetermined overhead rate is calculated by managers…

Q: Please tutor give the accurate step by step answer to this general accounting problem

A: Explanation of Total Revenue:Total revenue refers to the total amount of money a business earns from…

Q: What is the value of this investment of this financial accounting question?

A: Step 1: Define InvestmentInvesting is the choices investors make on which investment opportunities…

Q: Don't use ai given answer accounting questions

A: Step 1: Definition of Sales Volume VarianceSales Volume Variance measures the effect of the…

Q: How much was Harold's income on these financial accounting question?

A: Step 1: Define Net IncomeA company's net income is often called its bottom line because net income…

Q: I need this question general Accounting

A: Step 1: Define Inventoryinventory includes stocks of raw materials, finished goods, and…

Q: Wilson manufacturing has the following solve this accounting questions

A: Step 1: Definition of Absorption CostingUnder absorption costing, all production costs (both fixed…

Q: Winston's Super Market is currently an all equity firm.... Please solve this financial accounting…

A: Step 1: Define Bond CouponThe amount of the bond coupon may be determined by multiplying the bond's…

Q: Do fast answer of this accounting questions

A: Step 1: Define Net IncomeBefore taxes and benefit deduction is taken from an employee's paycheck,…

Q: In a goal to expand their user base, social media giant OneWorld acquired a small start-up company…

A: Step 1: Information givenAcquisition price = $51,100,000Fair market value of tangible assets =…

Q: What is amount allocated to ending inventory on a FIFO basis?

A: Step 1: In the periodic Inventory system, the Inventory account is not updated at the time of each…

Q: Please given correct option general accounting

A: Step 1: Define OverheadsOverheads are costs that cannot be directly traced to specific products or…

Q: Which of the following is the correct contribution margin per machine hour on these general…

A: Step 1: Calculate the contribution margin per unitContribution Margin per Unit = Selling Price per…

Q: Please provide this question solution general accounting

A: Approach to solving the question: For better clarity of the solution, I have provided the formula…

Q: To what extent should tax considerations influence the selection and application of accounting…

A: Detailed explanation:Definitions Related to the QuestionExplanation of Tax Considerations:Tax…

Q: Need help with question?

A: Relevant costs may include variable costs and fixed costs.Here's why:Variable costs (such as…

Q: Variable Overhead 12600

A: Explanation of Relevant Costs:Relevant costs are the costs that directly influence decision-making.…

Q: General Accounting

A: The question would require us to compute for the dividend yield and the required return. First…

Q: Please given correct answer general accounting

A: Step 1: Define OverheadOverhead is the collection of all the indirect costs like indirect materials,…

Q: None

A: The question requires the determination of the Debt-to-Equity Ratio.The debt-to-equity (D/E) ratio…

Q: Hello tutor please given correct answer general Accounting

A: Step 1: Define Allocation of Joint CostsThe two commonly used methods for allocating joint costs are…

Q: How much is the accounts receivable turnover ratio on these accounting question?

A: Step 1: Define Accounts Receivable Turnover RatioIt is a financial ratio that calculates how many…

Q: I need this question answer general Accounting

A: Step 1: Define PCS (Process costing system)When significant units that are identical are…

Question

100%

On October 1, 2016, a firm's accepted a 4- month... Please solve this general accounting question

On October 1, 2016, a firm accepted a 4-month, 9% note
for $32,000 from a customer with an overdue account
balance. The accrued interest recorded for this note on
December 31, 2016, is
a. $2,880.00
b. $720.00
c. $240.00
d. No accrual is necessary

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

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
Notes Receivable On September 1, 2016, Dougherty Corp. accepted a six-month, 7%, $45,000 interest-bearing note from Rozelle Company in payment of an account receivable. Doughertys year-end is December 31. Rozelle paid the note and interest on the due date. Required Who is the maker and who is the payee of the note? What is the maturity date of the note? Prepare all necessary journal entries that Dougherty needs to make in connection with this 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.
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.
A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?
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.
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?
Following are selected transactions of Youth Inc. during December 2016. Dec 1: Youth accepted a one year 8% note receivable from a new customer, GGC. The note is in settlement of an existing $1,500 account receivable. The note plus interest is due on November 30, 2016. Dec 8: An account receivable from JJ in the amount of $700 is determined to be uncollectible and is written off against the Allowance for Doubtful Accounts. Dec 15: Received $200 from one of its clients. Originally this amount was written off as uncollectible since Youth never expected to receive this amount from its client. Additional information for adjusting entries is as follows: An aging of accounts receivable indicates very likely uncollectible accounts totaling $9,000. Prior to the month-end adjustment, the Allowance for Doubtful Accounts had a credit balance of $5,210. Accrued interest revenue on the note receivable from GGC dated December 1, 2016. Prepare the journal entries for December…
A business issued a 90-day, 5% note for $24,000 to a creditor on account. The company uses a 360-day year for interest calculations. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. If an amount box does not require an entry, leave it blank. When required, round your answers to the nearest dollar. a. Accounts Payable Accounts Payable Notes Payable Notes Payable b. - Select - - Select - - Select - - Select - - Select - - Select -
1
A business issued a 30-day, 7% note for $75,600 to a creditor on account. The company uses a 360-day year for interest calculations. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. If an amount box does not require an entry, leave it blank or enter 0. When required, round your answers to the nearest dollar. a. fill in the blank 2 fill in the blank 4 b. fill in the blank 6 fill in the blank 7 fill in the blank 9 fill in the blank 10 fill in the blank 12 fill in the blank 13
A business issued a 60-day, 4% note for $21,600 to a creditor on account. The company uses a 360-day year for interest computations. Journalize the entries for (a) the issuance of the note and (b) the payment of the note at maturity, including interest. If an amount box does not require an entry, leave it blank. When required, round your answers to the nearest dollar. a. b. ?