On October 1, 2025, Bella, Inc. took out a cash loan for $50,000 by signing a six-month, 8% note payable. The journal entry for Bella when the note is issued would be: O Notes Payable Cash O Cash ооо Accounts Payable O Merchandise Inventory Notes Payable O Cash Notes Payable 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
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- Arvan Patel is a customer of Banks Hardware Store. For Mr. Patels latest purchase on January 1, 2018, Banks Hardware issues a note with a principal amount of $480,000, 13% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Banks Hardware Store for the following transactions. A. Note issuance B. Subsequent interest entry on December 31, 2018 C. Honored note entry at maturity on December 31, 2019.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?MCM Company issued a note receivable to a customer on September 1, 2020. The face value of the note was $20,000 at 5% interest for 7 months. What would be included in the journal entry on March 30, 2021? A credit to Interest Income for $250.00 A debit to Interest Income for $583.33 A credit to Interest Receivable for $250.00 A debit to Interest Receivable for $583.33
- Blue Devil Inc. sold goods to Black Mountain Corp. for $50,000 on March 1, 2020, accepting Black Mountain’s $50,000, 6-month, 6% note. Calculate the interest accompanied by this note. Please show your calculation steps. HTML EditorKeyboard ShortcutsThe financial statements of Bavarian Sausage Works (BSW) dated December 31, 2020, show $50,000 for "Note receivable." You learn that the company provided $50,000 cash to a customer (a new chain of hot dog stands) in exchange for a promissory note. The note was issued on January 1, 2019, bearing interest at 12% per year (which approximates the market interest rate), with principal and interest of $56,000 due on January 1, 2020. The hot dog chain has had numerous delays obtaining the required licences to operate on street corners. Consequently, on January 1, 2020, the chain and BSW renegotiated the promissory note so that the $56,000 in principal and interest would come due on January 1, 2022. Aside from the initial recording of the note receivable on January 1, 2019, BSW has not recorded any other journal entries relating to this note. Required Provide the necessary journal entries to correct BSW's accounts in 2019 and 2020.Maggie Sharrer Company borrows $88,500 on September 1, 2022, from Sandwich State Bank by signing an $88,500, 12%, one-year note. What is the accrued interest at December 31, 2022?
- Franny Realty loaned money and received the following notes during 2024. (Click the icon to view the notes received.) Read the requirements. Requirement 1. Determine the maturity date and maturity value of each note. (For each applicable note, compute interest using a 365-day year. Round to the nearest dollar.) Note Note (1) Note (2) Note (3) Date Apr. 1 Sep. 30 Jun. 19 $ Principal Amount 16,000 14,000 20,000 Interest Rate 12% 10% 14% Term 1 year 6 months 180 days Due date Month/Day YearOn September 1, 2024, Daylight Donuts signed a $186,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2025. Daylight Donuts should report interest payable at December 31, 2024, in the amount of: Multiple Choice $1,860 $5,580 $0 $3,720Flounder, Inc. issued a $115,000, 4-year, 12% note at face value to Flint Hills Bank on January 1, 2025, and received $115,000 cash. The note requires annual interest payments each December 31. Prepare Flounder's journal entries to record (a) the issuance of the note and (b) the December 31 interest payment.
- Selkirk Company obtained a $16,000 note receivable from a customer on January 1, 2024. The note, along with interest at 12%, is due on July 1, 2024. On February 28, 2024, Selkirk discounted the note at Unionville Bank. The bank’s discount rate is 15%. Required: Prepare the journal entries required on February 28, 2024, to accrue interest and to record the discounting for Selkirk. Assume that the discounting is accounted for as a sale.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?On August 1, 2021, Avonette, Inc., sold equipment and accepted a six-month, 9%, $50,000 note receivable. Avonette's year-end is December 31. Which of the following accounts will Avonette credit in the journal entry at maturity on February 1, 2022, assuming collection in full? O A. Interest Receivable B. Cash OC. Interest Payable O D. Note Payable