On October 1, 2016, Ratkowski Inc. borrowed $18,000 from the second national bank by issuing a 12-month note. The bank discounted the note at 9%. Prepare the journal entry needed to record the issuance of the note. Prepare the journal entry needed at December 31, 2016, to accrue interest. Prepare the journal entry to record the payment of the note on October 1, 2017. What effective rate of interest did Ratkowski pay?

Q: Zorzi Corporation borrowed $60,000 on November 1, 2017 by signing a $61,350, 3-month, zero-interest…

A: Journal entry is the primary entry that records the financial transactions initially.

Q: Sylvestor Systems borrows $161,000 cash on May 15, 2017, by signing a 30-day, 5% note.   1. On what…

A: Promissory note is an instrument issued by the borrower to lender for the money payable after the…

Q: using 360 days in a year, how much cash did thunder company receive from the bank?

A: Given information is: On september 1 thunder company received an p80,000, 12%, 120-day note from a…

Q: Taylor Bank lends Guarantee Company $115,531 on January 1. Guarantee Company signs a $115,531, 12%,…

A: Notes Payable means a promissory note in which one party agrees to pay the other party a certain…

Q: Determine the interest and due dates on notes                                   Cora Company had the…

A: Interest Due :— It is the amount of interest due on loan. It is calculated by multiplying amount of…

Q: Notes Payable On November 7, 2016, Mian Company borrows $160,000 cash by signing a 90-day, 8% note…

A: JOURNAL ENTRIESJournal Entry is the first stage of Accounting Process. Journal Entry is the Process…

Q: Find the interest of deducted in advance and the proceeds of a 90,000 bank discount note with an…

A: The question is related to the calculation of interest in advance and procceds net of interest.

Q: Autumn Designs & Decorators issued a 120-day, 6% note for $30,000, dated April 13 to Zebra Furniture…

A: Notes receivable is an asset which is a kind of promise from a another party that it will receive…

Q: On 1/1/17, Carl Weathers Corp. purchases an asset and promises to make four annual payments of…

A: The discount to notes payable is the discount which has been occurred at the time when a fixed…

Q: Proceeds from Notes Payable On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a…

A: Lets understand the basics.Proceeds from note is equal to all the cash received initially from…

Q: Proceeds from Notes Payable On January 26, Vibrant Co. borrowed cash from Conrad Bank by issuing a…

A: The cost of borrowing money over a given time period is expressed as interest, which is often stated…

Q: Analyze the following: A $10,000 60 day interest bearing note was issued for cash on June 30 at a…

A:

Q: Issued, on January 01, 2010, a four-year note to ABC Bank. Face value of note is $40,000. It is a 5%…

A: A Note payable is a benefit to both the borrower and the lender, as long as both parties understand…

Q: lint, Inc. issued a $185,000, 4-year, 11% note at face value to Flint Hills Bank on January 1, 2017,…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: On June 20, 2016, Rolf Inc. borrowed $25,000 from its bank, signing an 8%, two-year note. Assuming…

A: Solution: The journal entry Rolf will record on each of the following dates: 1) Assuming that the…

Q: amount of interest to be recorded

A: Interest on note receivable = Amount of note receivable * Interest rate * Months of maturity/12…

Q: A seven-month promissory note for $7,800 dated March 12, 2016 bears interest at 8% a. What is the…

A: Promissory note: It can be defined as a financial instrument containing a written promise of paying…

Q: E10.1 (LO 1), AP C.S. Lewis Company had the following transactions involving notes payable. July 1,…

A: Note payable: Note payable also called promissory note. It is a legal instrument in which one party…

Q: Compute the due date, amount of interest and total cash received on the maturity date for the…

A: Note receivable refers to a negotiable instrument. It represents the claim amount due on the…

Q: What price did the finance company pay for the promissory note?  What rate of interest did the…

A: Formula: For price, the finance company pay for the promissory note S= P(1+rt)P= S(1-dt) Rate of…

Q: Franny Realty loaned money and received the following notes during 2024. (Click the icon to view the…

A: The idea of the time value of money (TVM) holds that a quantity of money is worth more now than it…

Q: On 1st July 2020 Star LLC has accepted a note receivable for RO 2000 from one of the accounts…

A: Interest on note receivable shall be calculated from date of issuance till date of maturity.

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

A: Introduction: Journals: Recording of a business transactions in a chronological order. Each and…

Q: On Jan 1st, 2022, Saturn borrows $2,000,000 from Orange Bank and pledges $2,500,000 of its accounts…

A: Some banks allow to pledge a portion of accounts receivable as collateral to provide loan. In case…

Q: On September 1, 2015, Newtown borrowed $250,000 from First National Bank, and signed a 9% note…

A: Notes payable are the type of promissory notes which are issued in writing to repay the interest and…

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

A: NOTES PAYABLE Notes Payable is a Short Term Loan. Notes Payable are reported under the Non Current…

Q: ABC signed a 5-year, 9% note payable for $80,000 on May 1, 2012. Which account will be credited when…

A: Journal entry for Note Payable   1.Interest expense will be debited to book current years interest…

Q: On June 30, 2020, GHI Company discounted at the bank a customer P6,000,000, 6-month, 10% note…

A: A note receivable is an instrument that promises the holder of the note a certain amount of sum…

Q: Proceeds from Notes Payable On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a…

A: Notes is an instrument issued by the borrower to the ledgers. It acts like a promissory note issued…

Q: On January 1, 20Y2, Hebron Company issued a $71,000, 4-year, 11% installment note to Ventsam Bank.…

A: NOTES PAYABLE Notes payable, usually referred to as promissory notes, are a type of debt that a…

Q: Proceeds from Notes Payable On May 15, Franklin Co. borrowed cash from Dakota Bank by issuing a…

A: Introduction: A note payable is a promissory note in writing. Under this agreement, a borrower…

Q: Accounting for notes receivable and accruing interest Carley Realty loaned money and received the…

A: 1.   The maturity date of note 1, note 2 and note 3 are 31 March, 31 March and 18 December. The…

Q: Computing Accrued Interest Compute the interest accrued on each of the following notes receivable…

A: Interest accrued on the notes receivable means the amount of interest which is earned by the lender…

Q: October 1, 2015, GFS borrows $150,000 cash from a bank by signing a three-year installment note…

A: The question has asked to compute the amount of each installment payment, amortization table, and,…

Q: Determine the due date and the amount of interest due at maturity on the following notes: Date of…

A: Formulas: Due Date (Maturity Date) = Date of Note + term on the note (in days) Interest on Note =…

Q: Analyzing Interest-Bearing and Noninterest-Bearing Notes Consider the following three separate…

A: Bond valuation is the process of determining the fair or intrinsic value of a bond. The value of a…

Q: Proceeds from Notes Payable On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a…

A: a. Proceeds of the Note of $94,800.00 b. Proceeds of the Note of $93,378.00

Q: Keesha Co. borrows $200,000 cash on November 1, 2017, by signing a 90-day, 9% note with a face value…

A: Notes are a form of debt taken by the company, on which business has to pay interest payments. This…

Q: On November 01, 2014 MM Co. discounted three notes from HSBC bank. Bank charged 16%interest. Note…

A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…

Q: ompute the interest accrued on each of the following notes Jse 360 as the denominator when…

A: Solution: Maker Principal Interest rate Term (Days) Accrued Interest Maple 18000 10% 120 600…