General Accounting On October 1, a company lends $10,000 to an employee who signs a 9%,6-month promissory note. The company is preparing its year-endfinancial statements on December 31. No adjusting entries have beenrecorded in connection with this note. What adjusting entries should berecorded before the financial statements are prepared?A) Debit Interest Revenue and credit Interest Receivable for $225.B) Debit Interest Receivable and credit Interest Revenue for $450.C) Debit Interest Revenue and credit Interest Receivable for $450.D) Debit Interest Receivable and credit Interest Revenue for $225.

Step 1:- Introduction to the InterestInterest is treated as revenue by the party that lent money to…

Answered: On October 1, a company lends $10,000…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterD: Notes Payable And Notes Receivable

Section: Chapter Questions

Problem 5P

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Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: a. Journalize the write-offs under the direct write-off method. b. Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded 5,250,000 of credit sales during the year. Based on past history and industry averages, % of credit sales are expected to be uncollectible. c. How much higher (lower) would Casebolt Companys net income have been under the direct write-off method than under the allowance method?
Payroll accounts and year-end entries The following accounts, with the balances indicated, appear in the ledger of Codigo Co. on December 1 of the current year: The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: Instructions 1. Journalize the transactions. 2. Journalize the following adjusting entries on December 31: a. Salaries accrued: sales salaries, 4,275; officers salaries, 2,175; office salaries, 825. The payroll taxes are immaterial and are not accrued. b. Vacation pay, 13,350.
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